European policymakers have reached an agreement on the EU legislation on the Solvency II Directive. Accordingly, the balance sheet disclosed as part of the solvency and financial condition report will be subject to an audit by a statutory auditor for all insurance and reinsurance undertakings, apart from small and non-complex undertakings and captive insurance and captive reinsurance undertakings. The statutory auditor will issue a separate report thereon.
Member States have 2 years to transpose this EU legislation and may extend the audit requirements to:
- small and non-complex undertakings
- captive insurance and reinsurance undertakings
- other elements of the solvency and financial condition report.
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