Changes from plenary report to adopted text

Removed(c) restrict or suspend share buy-backs and repayment or redemption of own fund items;

Removed(d) restrict or suspend bonuses or other variable remuneration;

Removed(e) suspend redemption rights of life insurance policy holders..

RemovedThe power to suspend redemption rights shall only be exercised in exceptional circumstances, as a last resort measure and where this is in the collective interest of policyholders. Before exercising such a power, the supervisory authority shall take into account potential unintended effects on financial markets and on the rights of policyholders, including in a cross-border context. Supervisory authorities shall make the justification for the application of those powers public.

RemovedThe application of the measure referred to in the first subparagraph shall last no more than three months. Member States shall ensure that the measure can be renewed if the underlying reasons that justify it are still present and it is no longer applied when those reasons are no longer present.

RemovedWithout prejudice to Article 144c (6), Member States shall ensure that▌ insurance and reinsurance undertakings concerned shall not make distributions to shareholders and other subordinated creditors, and shall not pay bonuses or other variable remuneration where such pay is fully under the discretion of the undertaking, until the suspension of redemption rights is lifted by the supervisory authorities.

RemovedMember States shall ensure that supervisory authorities have the necessary powers for this purpose.

RemovedMember States shall ensure that authorities with a macroprudential mandate, where different from the supervisory authorities, are duly and timely informed of the supervisory authority's intention to make use of the power referred to in this paragraph, and are fully involved in assessing the potential unintended effects referred to in the second subparagraph.

RemovedMember States shall ensure that supervisory authorities shall notify EIOPA and ESRB whenever the power referred to in this paragraph▌ is exercised to address a risk for the stability of the financial system.

Removed3a. The application of the measures referred to in paragraph 3 of this Article shall duly take into account the proportionality criteria referred to in Article 29(3), and the existence of any preventively agreed risk tolerance limits and thresholds for internal capital planning.

RemovedWhere, after consulting the ESRB, EIOPA considers that the exercise of the power referred to in paragraph 3 by the competent authority is excessive, it shall issue an opinion and recommend the supervisory authority concerned to review its decision.

Removed3b. The application of measures referred to in paragraph 3 of this Article shall take into account the evidence resulting from the supervisory process and a forward-looking assessment of the solvency and financial position of the undertakings concerned, in line with the assessment referred to in Article 45(1), second subparagraph, points (a) and (b).

Removed4. The power referred to in paragraph 3 may be exercised in relation to▌ undertakings operating in that Member State where the exceptional circumstances referred to in paragraph 3 affect the whole or a significant part of the insurance market.

RemovedMember States shall appoint an authority to exercise the power referred to in this paragraph.

RemovedWhere the appointed authority is different from the supervisory authority, the Member State shall ensure proper coordination and exchange of information between the different authorities. In particular, authorities shall be required to cooperate closely and to share all the information that may be necessary for the adequate performance of the duties entrusted to the authority appointed pursuant to this paragraph.

Removed5. Member States shall ensure that the authority referred to in paragraph 4, shall notify in due time EIOPA and, where the measure is taken to address a risk to the stability of the financial system, the ESRB of the use of the power referred to in paragraph 4.

RemovedThe notification shall include a description of the measure applied, its duration, and a description of the reasons and risks that motivated the use of the power, including the reasons why it was considered effective and proportionate in relation to its negative effects on policyholders.

Removed6. In order to ensure consistent application of this Article, EIOPA shall, after consulting the ESRB, develop draft regulatory technical standards to further specify:

Removed(a) the measures to address deficiencies in liquidity risk management and on the form, activation and calibration of powers that supervisory authorities may exercise to reinforce the liquidity position of undertakings when liquidity risks are identified and are not adequately remedied by these undertakings;

Removed(b) ▌the existence of exceptional circumstances that may justify the temporary suspension of redemption rights;

Removed(c) ▌the conditions for ensuring the consistent application of the temporary suspension of redemption rights across the Union and the aspects to consider for equally and adequately protecting policyholders in all home and host jurisdictions.

RemovedEIOPA shall submit those draft regulatory technical standards to the Commission by ... [OP please add date = 12 months after entry into force].

RemovedPower is conferred on the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.

RemovedArticle 144c Supervisory measures to preserve the financial position of undertakings during exceptional sector-wide shocks

Removed1. Without prejudice to Article 141, Member States shall ensure that supervisory authorities have the power to take measures to preserve the financial position of individual insurance or reinsurance undertakings during periods of exceptional sector-wide shocks that have the potential to threaten the financial position of the undertaking concerned or the stability of the financial system.

Removed2. During periods of exceptional sector-wide shocks, supervisory authorities shall have the power to require undertakings with a particularly vulnerable risk profile to take at least the following measures:

Removed(a) restrict or suspend dividend distributions to shareholders and other subordinated creditors;

Removed(b) restrict or suspend other payments to shareholders and other subordinated creditors;

Removed(c) restrict or suspend share buy-backs and repayment or redemption of own fund items;

Removed(d) restrict or suspend bonuses or other variable remuneration.

RemovedMember States shall ensure that the relevant national bodies and authorities which have a macroprudential mandate are duly informed of the national supervisory authority's intention to make use of this Article, and are appropriately involved in the assessment of exceptional sector-wide shocks in accordance with this paragraph.

Removed3. The application of the measures referred to in paragraph 2 of this Article shall duly take into account the proportionality criteria referred to in Article 29(3), and the existence of any preventively agreed risk tolerance limits and thresholds for internal capital planning.

Removed4. The application of measures referred to in paragraph 2 of this Article shall take into account the evidence resulting from the supervisory process and a forward-looking assessment of the solvency and financial position of the undertakings concerned, in line with the assessment referred to in Article 45(1), second subparagraph, points (a) and (b).

Removed5. The application of the measures referred to in paragraph 2 shall last for as long as the underlying reasons that justify the measure are present. Those measures shall be reviewed every three months and shall be removed as soon as the underlying conditions that motivated the measures are over.

Removed6. For the purpose of this Article, significant intra-group transactions referred to in Article 245(2) including intra-group dividend distributions, shall only be suspended or restricted where they are a threat to the solvency or liquidity position of the group or of one of the undertakings within the group. The supervisory authority of a related undertaking shall consult the group supervisor before suspending or restricting transactions with the rest of the group.

Removed7. In order to ensure consistent conditions of application of this Article, EIOPA shall, after consulting the ESRB, develop regulatory technical standards to specify the existence of exceptional sector-wide shocks.

RemovedEIOPA shall submit those draft regulatory technical standards to the Commission by [OP please add date = 12 months after entry into force].

RemovedPower is conferred on the Commission to adopt those regulatory technical standards in accordance with Article 10 to 14 of Regulation (EU) No 1094/2010.’;

Removed(55) in Article 145, paragraph 2 is amended as follows:

Removed(a) point (c) is replaced by the following:

Removed‘(c) the name of a person who possesses sufficient powers to bind, in relation to third parties, the insurance undertaking;’;

Removed(b) the second subparagraph is deleted;

Removed(56) Article 149 is replaced by the following:

Removed‘Article 149 Changes in the nature of the risks or commitments

Removed1 The procedure provided for in Articles 147 and 148 shall apply to any change which an insurance undertaking intends to make to the information referred to in Article 147.

Removed2. Where there is a change in the business pursued by the insurance undertaking under the freedom to provide services that is materially affecting its risk profile or materially influencing the insurance activities in one or more host Member States, the insurance undertaking shall inform the supervisory authority of the home Member State immediately. The supervisory authority of the home Member State shall inform the supervisory authorities of the host Member States concerned without delay.’;

Removed(57) in Article 152a, paragraph 2 is replaced by the following:

Removed‘2. The supervisory authority of the home Member State shall notify EIOPA and the supervisory authority of the relevant host Member State if it identifies deteriorating financial conditions or other emerging risks, including those concerning consumer protection, posed by an insurance or reinsurance undertaking carrying out activities which are based on the freedom to provide services or the freedom of establishment and which may have a cross-border effect. The supervisory authority of the host Member State may also notify EIOPA and the supervisory authority of the relevant home Member State where it has serious and reasoned concerns with regard to consumer protection. The supervisory authorities may refer the matter to EIOPA and request its assistance where no bilateral solution can be found.’;

Removed(58) Article 152b is amended as follows▌:

Removed(a) paragraph 1 is replaced by the following:

Removed‘EIOPA shall set up and coordinate a collaboration platform to strengthen the exchange of information and to enhance collaboration between the relevant supervisory authorities of the home Member State and the host Member States where an insurance or reinsurance undertaking carries out, or intends to carry out, significant cross-border activities.’;

Removed(b) paragraph 2 is replaced by the following:

Removed‘2. The relevant supervisory authorities shall submit to the collaboration platform all relevant information available in relation to the insurance or reinsurance undertaking concerned. That information, including all information received in accordance with Article 35 and on actions taken by the relevant supervisory authorities, shall be provided within a month to allow for the proper functioning of the collaboration platform.’;

Removed(c) paragraph 3 is replaced by the following:

Removed‘3. The setting up of a collaboration platform pursuant to paragraph 1 is without prejudice to the supervisory mandate of the supervisory authorities of the home Member State and host Member State provided for in this Directive.’;

Removed(d) the following paragraphs 5, 6, 6a and 6b are added:

Removed‘5. Where two or more relevant authorities of a collaboration platform disagree about the procedure or content of an action to be taken, or inaction, in relation to an insurance or reinsurance undertaking, EIOPA shall, at the request of any relevant authority or on its own initiative, assist the authorities in reaching an agreement in accordance with Article 19(1) of Regulation (EU) No 1094/2010.

Removed6. In the event of disagreement within the collaboration platform and where there are serious concerns about negative effects on policyholders or about the content of an action or inaction to be taken in relation to an insurance or reinsurance undertaking, EIOPA may decide, on its own initiative, to initiate and coordinate on-site inspections. It shall invite the supervisory authority of the home Member State as well as other relevant supervisory authorities of the collaboration platform to participate in those on-site inspections.’

Removed6a. In the event that the supervisory authorities concerned fail to reach a common view in the collaboration platform within a time limit established by EIOPA, EIOPA may, in accordance with Article 16 of Regulation (EU) No 1094/2010, issue a recommendation to the supervisory authority concerned.

Removed6b. Where the supervisory authority concerned does not comply with that recommendation within two months, it shall state the reasons, including the steps it has taken or intends to take in order to address the concerns of the other supervisory authorities involved. EIOPA shall assess those steps and decide whether they are sufficient and appropriate. In the event that they are not deemed appropriate, EIOPA shall make its recommendation public, including the name of the undertaking or undertakings concerned, with the reasons therefor and the proposed steps to be taken.’;