UK regulator will continue to work to a 2014 implementation date
FSA director of insurance Julian Adams has warned the market to plan for a 2014 implementation date for Solvency II. This is despite continued uncertainty over whether the deadline will be put back further.
The vote on whether the European Parliament will adopt Omnibus II – which has proposed amendments to Solvency II – has been beset by delays. It is expected to take place at the end of March, but further delays until September are possible as the European regulators continue to focus their attention on the Eurozone debt crisis.
In an industry briefing on 27 February, Adams said the FSA would be sticking with its timetable for Solvency II.
“You’ll be aware, of course, that the timetable is a very tight one, particularly in the context of a legislative process which has been far from straightforward, and I should share with you our views on what might happen if there is a further delay,” he said.
“We await a key vote in the European Parliament at the end of March, and it would clearly not take much further slippage in this to put transposition in January 2013 at risk, but this would not necessarily affect the implementation date for firms in January 2014,” he continued. “What it might do instead is merely compress the period between transposition and implementation.”
“It therefore remains our assumption that the new regime will apply to firms from January 2014, and we have developed a plan which reflects this. Clearly, it is possible that this will change in the future, but for the time being we remain of the view that we must plan for a 2014 implementation.”