Context
Clearly demonstrating an alignment between the FCA and EU Regulators, EIOPA has published its approach to supporting the objective of simplifying regulation and reducing administrative burdens for enhanced European competitiveness. To achieve a balanced and credible outcome, EIOPA calls for smarter, more harmonised regulation (“Bolder, Simpler, Faster“) alongside more effective supervision at the EU level.
Key points to note and next actions
Although the suggested initiatives seem to be aimed significantly at insurers, the approach document covers the general context of the published approach, EIOPA’s approach to simplification and burden reduction, policy work (including consumer protection), policymaking, and supervision.
The published news article sets out, much like the FCA has done of late, how EIPOA has been advancing regulatory simplification in all areas of its work by:
- shortening Solvency II guidelines;
- streamlining reporting templates and reducing data points for Solvency II reporting;
- introducing proportionality principles where possible;
- permanently reducing the frequency of stress tests for insurers; and
- promoting the streamlining of requirements related to product disclosures, product design and sales processes.