EIOPA Q&A Process on EU Regulation Clarifies Application

• EIOPA's Question and Answer process allows financial institutions to submit questions related to EU regulation.
• The process ensures consistent application of EU legislation and fosters supervisory convergence.
• Answers provided by the European Commission clarify existing provisions without introducing new requirements or obligations.

The answers provided by the European Commission are intended to assist in clarifying the application of relevant legal provisions, but they do not have binding force in law.

The European Insurance and Occupational Pensions Authority (EIOPA) has established a Question and Answer process to ensure consistent application of EU regulation and foster supervisory convergence. This process allows financial institutions, competent authorities, and Union institutions to submit questions related to the practical implementation of legislative acts, delegated and implementing acts, and EIOPA's guidelines and recommendations in the insurance and pensions field. Questions can be submitted in any official language of the Union, but it is recommended that institutions first address their queries to their competent authority before submitting them to EIOPA.

The Q&A process is based on Article 16b of Regulation (EU) No 1094/2010, which allows any natural or legal person to submit questions related to the practical application of EU legislation. EIOPA will forward questions requiring Union law interpretation to the European Commission, which will provide answers clarifying existing provisions without introducing new requirements or obligations. The process ensures that only admissible questions are answered and published on EIOPA's website, while rejected questions may indicate potential compliance exposures for financial institutions.

Financial institutions should note that the Q&A process does not introduce new requirements but rather provides clarification on existing legislation. The answers provided by the European Commission are intended to assist in clarifying the application of relevant legal provisions, but they do not have binding force in law. However, their practical significance will be scrutinized and challenged by EIOPA and competent authorities to ensure a level-playing field. Institutions should also be aware that rejected questions may indicate potential compliance exposures, highlighting the importance of carefully reviewing the Q&A process before submitting questions.

Financial institutions should note that EIOPA's Q&A process does not introduce new requirements, but rather provides clarification on the application of existing legislation. They should also be aware that rejected questions are published on EIOPA's website and may indicate potential compliance exposures.

Source: Original reporting via EIOPA's website