Question ID: 1729
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article: 204
Status: Final
Date of submission: 11 Nov 2018
Question
My question is about the "Exp UL" item within the Operational risk formula set in Art. 204 of the delegated regulation 2015/35.
In managing our unit-linked business, we use to withdraw regular management fees from the units value and, at the same time, we release a certain percentage of theese commissions to the sales network. Therefore, these monetary amounts represent the portion of revenues belonging to distributors, and not to our undertaking.
The question is: shall we consider theese ceded fees as part of Exp UL?
EIOPA answer
The commissions to the sales force should be a part of the ExpUL for the purpose of calculating the capital requirement for operational risk.