Solvency II a bloated shadow
December 29, 2015

January 1 marks the culmination of years of work and billions of pounds of expenditure for UK financial organizations as Solvency II, the European legislation designed to prevent insurance companies from collapsing due to insolvency, comes into force.

But according to experts at Silverfinch, a secure fund data utility, Solvency II is now a bloated shadow of its former self, changed beyond recognition from the original legislation and costing vastly more to implement.

John Dowdall, Silverfinch's Managing Director, said: "The legislation that comes into force on January 1 bears little resemblance to the proposal first made by the European Union some years ago. It's bigger, it's more expensive, it's data-intensive and there are serious questions about the ability of financial regulators to make meaningful sense of the tsunami of information that insurance companies are about to send them.

"The real test is not what happens on January 1, but what happens in three–four months when insurance companies will have their first audits under Solvency II. That's when we'll find out if the industry is truly compliant and just how much importance the regulator is going to place on getting it right."

Silverfinch enables insurance companies to receive detailed ‘look-through' data on their investments placed with asset management firms. The data are required by insurers to assess the degree of risk to which their investments are exposed, a key requirement of Solvency II. Without the data, an insurance company is not compliant.





This site, like many others, uses small files called cookies to customize your experience. Cookies appear to be blocked on this browser. Please consider allowing cookies so that you can enjoy more content across globalcustody.net.

How do I enable cookies in my browser?

Internet Explorer
1. Click the Tools button (or press ALT and T on the keyboard), and then click Internet Options.
2. Click the Privacy tab
3. Move the slider away from 'Block all cookies' to a setting you're comfortable with.

Firefox
1. At the top of the Firefox window, click on the Tools menu and select Options...
2. Select the Privacy panel.
3. Set Firefox will: to Use custom settings for history.
4. Make sure Accept cookies from sites is selected.

Safari Browser
1. Click Safari icon in Menu Bar
2. Click Preferences (gear icon)
3. Click Security icon
4. Accept cookies: select Radio button "only from sites I visit"

Chrome
1. Click the menu icon to the right of the address bar (looks like 3 lines)
2. Click Settings
3. Click the "Show advanced settings" tab at the bottom
4. Click the "Content settings..." button in the Privacy section
5. At the top under Cookies make sure it is set to "Allow local data to be set (recommended)"

Opera
1. Click the red O button in the upper left hand corner
2. Select Settings -> Preferences
3. Select the Advanced Tab
4. Select Cookies in the list on the left side
5. Set it to "Accept cookies" or "Accept cookies only from the sites I visit"
6. Click OK

January 1 marks the culmination of years of work and billions of pounds of expenditure for UK financial organizations as Solvency II, the European legislation designed to prevent insurance companies from collapsing due to insolvency, comes into force.

But according to experts at Silverfinch, a secure fund data utility, Solvency II is now a bloated shadow of its former self, changed beyond recognition from the original legislation and costing vastly more to implement.

John Dowdall, Silverfinch's Managing Director, said: "The legislation that comes into force on January 1 bears little resemblance to the proposal first made by the European Union some years ago. It's bigger, it's more expensive, it's data-intensive and there are serious questions about the ability of financial regulators to make meaningful sense of the tsunami of information that insurance companies are about to send them.

"The real test is not what happens on January 1, but what happens in three–four months when insurance companies will have their first audits under Solvency II. That's when we'll find out if the industry is truly compliant and just how much importance the regulator is going to place on getting it right."

Silverfinch enables insurance companies to receive detailed ‘look-through' data on their investments placed with asset management firms. The data are required by insurers to assess the degree of risk to which their investments are exposed, a key requirement of Solvency II. Without the data, an insurance company is not compliant.



Free subscription - selected news and optional newsletter
Premium subscription
  • All latest news
  • Latest special reports
  • Your choice of newsletter timing and topics
Full-access magazine subscription
  • 7-year archive of news
  • All past special reports
  • Newsletter with your choice of timing and topics
  • Access to more content across the site