UK grants SII equivalence to EEA states

Written by Adam Cadle

10/11/2020

HM Treasury has said EEA states are equivalent for the purposes of Solvency II (SII) articles 378, 379 and 380.

This direction covers all three equivalence decisions covering both reinsurance and group capital treatment and will form part of UK law at the end of the transition period.

“A full set of SII equivalence decisions for the EEA States is beneficial for the UK by providing certainty and continuity,” HM Treasury stated.

Under plans outlined by Chancellor Rishi Sunak for the future of UK financial services, climate disclosures by large companies and financial institutions across the economy will be made mandatory by 2025.

In addition, Sunak said: “We’re implementing a new ‘green taxonomy’, robustly classifying what we mean by ‘green’ to help firms and investors better understand the impact of their investments on the environment.

“And, to meet growing investor demand, the UK will, subject to market conditions, issue our first ever Sovereign Green Bond next year. This will be the first in a series of new issuances, as we look to build out a ‘green curve’ over the coming years helping to fund projects to tackle climate change, finance much-needed infrastructure investment, and create green jobs across this country.”

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