Solvency II controversy risks delay

Solvency II proposals have been watered-down after member states failed to agree on measures for a group support regime that some EU countries felt handed too much control to other regulators and did not offer sufficient reassurances about the solvency of local subsidiaries. The text is currently seeking approval from the European Parliament and Council but the French Presidency, which is responsible for concluding the discussions, has issued a new version of the Solvency II test that omits the controversial group support rules.