Hot Topic - EIOPA publishes interim technical guidelines and launches stress testing exercise

On 30 April 2014 the European Insurance and Occupational Pensions Authority (‘EIOPA’) published the detailed technical specifications which will be used as the basis for Solvency II interim reporting during 2014 and 2015. These give a crucial early insight into the likely direction of travel towards the final Solvency II requirements.The Prudential Regulation Authority ('PRA') has already warned that these technical specifications will also form the basis of a UK wide survey, starting in May, of both Standard Formula and Internal Model firms to compare SCR and ICA differences.Alongside the publication of these technical specifications EIOPA also formally launched a stress testing exercise for certain larger firms, which will be conducted Q2 and Q3 2014, with results expected in November 2014.