ECON vote puts Solvency II on track

Political negotiations on the Solvency II framework directive are near completion. Although not without substantial changes, the text retains enough of its original risk-based focus to move forward at a critical time for financial services regulation

Political agreement on the Solvency II framework directive before the end of this year is still in sight after the European Parliament’s Economic and Monetary Affairs Committee (ECON) adopted the directive in its first-reading. With so much uncertainty over the future of financial services regulation in the current credit crisis, the vote is a welcome sign that Solvency II can stay on track.