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COVID-19 - Impact on Financial Sector - 24 March 2020

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24/03/2020

Please find below a summary of COVID-19 developments relevant to our clients; these alerts are dedicated to following up on the financial regulators’ responses to the crisis. We wish you and your loved ones well.

If you have any questions please feel free to contact: 

Tom Van Dyck
+32 475 90 90 91
t.vandyck@liedekerke.com

Freya Mareels 
+32 475 25 11 50
f.mareels@liedekerke.com

Wim Dedecker
+32 491 36 03 99
w.dedecker@liedekerke.com

 

19/03/2020

State aid: Commission adopts Temporary Framework to enable Member States to further support the economy in the COVID-19 outbreak

The European Commission has adopted a Temporary Framework to enable Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the COVID-19 outbreak. This State aid Temporary Framework provides for five types of aid, including: 

  • State guarantees for loans taken by companies from banks: Member States will be able to provide State guarantees to ensure banks keep providing loans to the customers who need them.
  • Safeguards for banks that channel State aid to the real economy: Some Member States plan to build on banks' existing lending capacities, and use them as a channel for support to businesses – in particular to small and medium-sized companies. The Framework makes clear that such aid is considered as direct aid to the banks' customers, not to the banks themselves, and gives guidance on how to ensure minimal distortion of competition between banks.
  • Short-term export credit insurance: The Framework introduces additional flexibility on how to demonstrate that certain countries are not-marketable risks, thereby enabling short-term export credit insurance to be provided by the State where needed.
     
20/03/2020

EIOPA issues Recommendations on supervisory flexibility regarding deadlines of supervisory reporting and public disclosure by insurers

EIOPA has issued Recommendations to offer operational relief to insurance undertakings:

  • Recommendation 1 with respect to Annual Reporting referring to year-end occurring on 31 December 2019 (or year-end after that date but before 1 April 2020):
    • Competent authorities should accept an 8-week delay in the submission of the Regular Supervisory Report both at solo and group level.
    • Competent authorities should accept an 8-week delay in the submission of the annual Quantitative Reporting Templates (with certain exceptions).

  • Recommendation 2 with respect to Quarterly Reporting referring to Q1 2020
    • Competent authorities should accept one week delay in the submission of the Q1-2020 Quantitative Reporting Templates and the Quarterly Financial Stability reporting both at solo and group level (with certain exceptions).
    • For this quarterly submission early submissions are encouraged. Recognising the importance of focusing effort on the overall accuracy of the submissions, if necessary, undertakings may consider a proportionate approach to less material aspects of the calculations.
    • Competent authorities should accept a 4-week delay for the template Derivatives Transactions.
    • Insurance and reinsurance undertakings are expected to report in the Own Funds template an estimation of the SCR for the end of the quarter reference date, and not the last calculated one as indicated in the Instructions.

  • Recommendation 3 with respect to the Solvency and Financial Condition Report referring to year-end occurring on 31 December 2019 (or year-end after that date but before 1 April 2020):
    • Competent authorities should accept an 8-week delay for the publication of the Solvency and Financial Condition Report (SFCR) (with certain exceptions).


Copyright - Please do not quote without permission. Please note that this alert is not a legal advice.