The FSLA glossary seeks to provide definitions and descriptions of terminology relevant to financial services law and the financial services industry. It is a collaborative effort - if you think a term is missing, please suggest a definition using the Submit Term link. Suggestions for improving an existing entry should be sent to website@fsla.org.uk.
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| Solvency II | Fundamental review of the capital adequacy regime for
the European insurance industry that aims to establish a revised set of
EU-wide capital requirements. The framework consists of three ‘pillars’. Pillar 1
sets out the minimum capital requirements firms will be required to
meet for insurance, credit, market and operational risk. Pillar 2 will
be the supervisory review process – because of this, supervisors may
decide that a firm should hold additional capital against risks not
covered in pillar 1. The aim of pillar 3 disclosures is to harness
market discipline by requiring firms to publish certain details of
their risks, capital and risk management.
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Glossary V2.0 |
