European Commission Calls on Slovak Insurance Supervisor to Take Measures in Order to Ensure Compliance With Union Law
The Commission has adopted a formal opinion requiring the Slovak insurance supervisory authority (Narodna banka Slovenska, NBS) to fully comply with the EU prudential regime for insurance and reinsurance undertakings in the EU (Solvency II). This opinion follows the recommendation issued by the
Under the breach of Union law procedure, EIOPA has gathered evidence that a Slovak insurance company, under the supervision of the NBS as home supervisor, has been non-compliant over the past years with Solvency II (https://www.eiopa.europa.eu/browse/solvency-2_en) rules in relation to technical provisions, capital requirements, investments and system of governance. EIOPA investigated and concluded that the Slovak supervisor failed to take the necessary corrective measures to address the firm's non-compliance. Therefore, EIOPA recommended NBS to take appropriate steps to ensure a structural and sustainable recovery of all infringements or, if appropriate or mandatory, withdraw the firm's authorisation.
Pursuant to EIOPA's recommendation, the NBS announced an integrated supervisory strategy and initiated several supervisory actions, including the launch of a sanctioning procedure against the insurer.
Based on a careful monitoring, the Commission welcomes the actions taken by the Slovak supervisor since EIOPA issued the recommendation. However, the Commission notes that as long as no decisive supervisory measures have been taken, the NBS is not compliant with the Solvency II Directive. For those reasons, the Commission considers that the Slovak supervisor should make additional efforts, in particular to finalise the sanctioning procedure and adopt final conclusive supervisory actions that ensure compliance with Union law.
Commissioner for financial services, financial stability and
Next Steps
Narodna banka Slovenska (NBS), has ten working days upon receipt of the opinion to inform the Commission and the
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Background
Article 17(1) of Regulation (EU) No 1094/2010 (EIOPA Regulation) empowers EIOPA to investigate potential breaches of sectoral legislation falling under its remit by competent authorities. If a breach is established, EIOPA provides recommendation to the national competent authority concerned on actions necessary to restore compliance with Union law.
The Commission is entrusted with monitoring the follow up given by national competent authorities in the context of breach of Union law recommendations issued by the European Supervisory Authorities (ESAs). In case of non-compliance with the ESAs recommendation, the
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For More Information
Legal basis: EIOPA Regulation (https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:331:0048:0083:EN:PDF)
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Original text here: https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5496
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