Commission slashes ABS charges in delegated acts

Solvency II measures aim to boost infrastructure and securitisations


The European Commission is seeking to encourage insurers to invest in infrastructure and securitisations with a range of concessions featured in the Solvency II delegated acts, published today.

The acts slash the standard formula capital charge for Type 1 BBB rated securitisations to 3% per year of modified duration. This is a substantial reduction from the 5% floated in a draft version of the document circulated in July, and a huge cut from the 20% charge initially proposed by the European Insu