Keep regulation in proportion


Proportionality is a fundamental principle of European law. The principle underlies everything that the European Union does and requires the European Commission to justify the relevance and impact of all its proposals against this principle.

How the principle of proportionality applies to Solvency II remains unclear. What the principle should mean is that the compliance burden on firms is in proportion to their risk profile, taking into account the nature, scale and complexity of the business

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