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THE EUROPEAN COMMISSION,Having regard to the Treaty on the Functioning of the European Union,Having regard to Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking up and pursuit of the business of Insurance and Reinsurance (Solvency II)note, and in particular Article 109a(2)(c) thereof,Whereas:
(1)The adjustments laid down in this Regulation take into account the detailed criteria set out in Article 188(5) of Commission Delegated Regulation (EU) 2015/35note.
(2)In order to ensure a consistent treatment of currencies pegged to the euro in the calculation of the capital requirement for currency risk, adjusted factors should be provided for the currency risk relating to the exchange rates between the euro and currencies pegged to the euro as well as in relation to the exchange rates between two currencies pegged to the euro.
(3)This Regulation is based on the draft implementing technical standards submitted by the European Insurance and Occupational Pensions Authority to the Commission.
(4)The European Insurance and Occupational Pensions Authority has conducted open public consultations on the draft implementing technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the opinion of the Insurance and Reinsurance Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1094/2010 of the European Parliament and of the Councilnote,
HAS ADOPTED THIS REGULATION:
Article 1Adjusted factors for currency risk where the local or foreign currency is the euro#
Where the local or foreign currency is the euro, for the purposes of Article 188(3) and (4) of Delegated Regulation (EU) 2015/35, the 25 % factor is replaced by:
(a)0,39 % where the other currency is the Danish krone (DKK);
(b)1,81 % where the other currency is the lev (BGN);
(c)2,18 % where the other currency is the West African CFA franc (BCEAO) (XOF);
(d)1,96 % where the other currency is the Central African CFA franc (BEAC) (XAF);
(e)2,00 % where the other currency is the Comorian franc (KMF).
Article 2Adjusted factors for currency risk where the local and the foreign currency are pegged to the euro#
For the purposes of Article 188(3) and (4) of Delegated Regulation (EU) 2015/35, the 25 % factor is replaced by:
(a)2,24 % where the two currencies are the DKK and the BGN;
(b)2,62 % where the two currencies are the DKK and the XOF;
(c)2,40 % where the two currencies are the DKK and the XAF;
(d)2,44 % where the two currencies are the DKK and the KMF;
(e)4,06 % where the two currencies are the BGN and the XOF;
(f)3,85 % where the two currencies are the BGN and the XAF;
(g)3,89 % where the two currencies are the BGN and the KMF;
(h)4,23 % where the two currencies are the XOF and the XAF;
(i)4,27 % where the two currencies are the XOF and the KMF;
(j)4,04 % where the two currencies are the XAF and the KMF.
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