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The Actuary The magazine of the Institute & Faculty of Actuaries

FSA expects Solvency II to be delayed

It said 1 January 2013 remains the date at which the responsibilities of supervisors and EIOPA would be switched on but that 1 January 2014 is when the Solvency II requirements would be switched on for firms.

But it said: "The key thing to remember is that these changes do not mean a delay of a year; we must maintain the momentum and stay focused on implementation."

The FSA said supervisors will contact with their firms in the coming weeks to discuss what this means for implementation plans. Smaller firms should attend the Smaller Insurers Seminar on 20 October.

No EU confirmation
The FSA warned the delay had not been confirmed in Europe. "At this stage there is no agreement on any of these proposals. Discussions will resume under the Polish presidency, which will start in July 2011. Should Council reach an agreement on this issue, their proposal would need to be endorsed by Parliament to be formally adopted as part of the Omnibus II Directive," it said.

"Consequently, we continue to work on the assumption that the implementation date is 1 January 2013."

The FSA said: "Firms should continue their preparations, making clear assumptions and building flexibility into their plans so they can update them as more information becomes available.

"We appreciate that firms are progressing their implementation plans, including those going through the internal model approval process. We are currently assessing the impact of the draft proposals and will continue to provide further clarification when we have a greater degree of certainty."

This article first appeared on The Actuary's sister publication Postonline.