Regulation on Disclosure Obligations of Insurance Companies
In the current state of public disaster, the Insurance and Pension Funds Supervisory Authority (ASF) sought to minimise the impact of the measures that have been adopted to control the epidemic outbreak in the sectors supervised by it by publishing Regulation No. 5/2020-R. This is the insight of the Insurance Sector team of Abreu Advogados into the new rule.
Regulation No. 5/2020-R was published on 27 May. As provided in Article 1, the regulation seeks to ease or relax the deadlines for providing or disclosing information as laid down in the rules of the Insurance and Pension Funds Supervisory Authority (ASF).
In the current state of public disaster, as announced by Resolution of the Council of Ministers no. 33-A/2020, the ASF sought to minimise the impact of the measures that have been adopted to control the epidemic outbreak in the sectors supervised by it.
Consequently, the provisions of the relevant Regulation concern insurance and reinsurance companies, insurance intermediaries and pension fund management companies. This regulation applies also to branches of insurance companies with head office in another EU Member State in respect of business carried on in Portuguese territory and to insurance companies with head office in a EU Member State carrying on business in Portugal by way of freedom to provide services.
Analysing and summarising, the regulation can be divided into three large groups of provisions: (i) Annual reporting under the Solvency II regime; (ii) Relaxed reporting deadlines for insurance intermediaries; (iii) Relaxed deadlines for reporting requirements for pension fund management companies.
(i) Annual reporting under the Solvency II regime
Concerning the first set of provisions, and in line with the recommendations of the European Insurance and Occupational Pensions Authority (EIOPA), the ASF has eased compliance with deadlines for the provision and dissemination of information.
Concerning solvency at both group and individual level, the deadlines for different reporting to the ASF, such as balance sheet templates (S.02.01), long-term measures (S.22.01), equity (S.23.01), basic information (S.01.02) or submission of content (S.01.01), have been extended. Such information must now be reported by 21 April (for Individual Solvency) and by 2 June (for Group Solvency).
On the other hand, the deadlines for delivering several forms with quantitative information on the first quarter of 2020 have been extended, 12 May 2020 being the main delivery date for the respective reports.
Finally, and concerning the new reporting timeline, accounting and financial reporting to the ASF, as laid down in Regulation no. 8/2016-R, is due within 15 days of adoption of the accounts by the General Meeting.
(ii) Relaxed reporting deadlines for insurance intermediaries.
Following the reporting requirements laid down in Article 10(1) of Regulation No. 15/2009-R, the 2019 accounts shall be sent to the ASF within 15 days of the adoption of the accounts by the General Meeting and no later than 15 July 2020, even if the report and accounts have not been adopted.
In parallel, the maximum time-limit for publication of the annual financial statements on the website or for making them available at the insurance or reinsurance intermediary’s offices shall be nine months after the end of the financial year 2019.
(iii) Relaxed deadlines for reporting requirements for pension fund management companies.
The reports and accounts of pension fund management companies, and their audit reports and organisational structure may be delivered exceptionally no later than 15 days after the accounts are adopted by the General Meeting.
Concerning the accounts, each pension fund has until 30 June to submit its report and accounts.
Finally, the obligation to publish on the website the various statements on financial performance of the funds has been extended to 15 July.
(iv) Duration and Scope of the Regulation
This Regulation entered into force on 28 May and became applicable from 30 March 2020.
The time limits for the provision and disclosure of information laid down in applicable legislation and regulations and not mentioned in this Regulation remain unchanged and shall be fully met.