The European Commission is finalising regulation to apply reduced Solvency II capital charges on investments insurers make through European long-term investment funds (Eltifs).
Klaus Wiedner, head of the Commission's insurance unit, said in a meeting with member state representatives that a draft delegated act will be issued before the summer.
Eltifs were designed to encourage investment into asset classes that are too illiquid for existing fund structures.
The Commission plans to include Eltifs in the lower equity risk category for Solvency II capital calculation purposes. This means that investments in units of those funds will attract a 39% capital charge, as European social entrepreneurship funds and European venture capital funds already do.
In response to member states' concerns, Wiedner said that the proposed calibration was covered in the impact assessment conducted by the European Insurance and Occupational Pensions Authority (Eiopa) in 2013. This is according to the minutes of the meeting of the Expert Group on Banking, Payments and Insurance, which was held on 5 March.
Wiedner added that draft regulation defining a specific infrastructure asset class will be issued in the second half of the year. Eiopa is currently finalising a technical advice report. The Commission is also considering a separate, cross-sectoral, legislative initiative on the treatment of securitisations, which could be put forward in the autumn.
