in force 2024-07-09 INSERTED+867 −0§
Amended by Regulation (EU) 2024/1623 32024R1623
applies from: unknown (an inserted provision states its own application date only in prose)
This is a new article requiring EBA to report to the Commission by 10 January 2028 on several matters concerning the use of insurance in calculating own funds requirements for operational risk, including possible regulatory arbitrage from insurance recoveries, differing impacts on coverage of recurring versus tail losses, and the availability and quality of data institutions use for this calculation.
It further states that, based on that report, the Commission shall, where appropriate, submit a legislative proposal to the European Parliament and the Council by 10 January 2029.
Cited: Art. 519e, v2
text before / after
inserted text (02013R0575-20240709)
Article 519 e Operational risk By 10 January 2028, EBA shall report to the Commission on the following: (a) the use of insurance in the context of the calculation of the own funds requirement for operational risk; (b) whether the recognition of insurance recoveries might lead to regulatory arbitrage by reducing the annual operational risk loss without a commensurate reduction in the actual operational loss exposure; (c) whether the recognition of insurance recoveries has a different impact on the appropriate coverage of recurring losses and of potential tail losses; (d) the availability and quality of data used by institutions when calculating their own funds requirement for operational risk. On the basis of that report, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 10 January 2029.