Commission slashes ABS charges in delegated acts

Solvency II measures aim to boost infrastructure and securitisations

european-commission

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