Legal basis

1. The European Insurance and Occupational Pensions Authority (EIOPA) provides this Opinion on the basis of Article 29(1)(a) of Regulation (EU) No 1094/2010. This article mandates EIOPA to play an active role in building a common Union supervisory culture and consistent supervisory practices, as well as in ensuring uniform procedures and consistent approaches throughout the Union by providing opinions to competent authorities.

2. EIOPA delivers this Opinion on the basis of Directive 2009/138/EC (Solvency II Directive), in particular in relation to Articles 101(5) and 110, Commission Delegated Regulation (EU) 2015/35 (Delegated Regulation), in particular in relation to Articles 208-214 and 276, EIOPA's Guidelines on Basis Risk and EIOPA's Guidelines on system of governance.

3. This Opinion is addressed to the competent authorities, as defined in point (i) of Article 4(2) of Regulation (EU) No 1094/2010 [Notwithstanding the fact that specific points of this Opinion describe supervisory expectations for insurance and reinsurance undertakings, they are required to comply with the regulatory and supervisory framework applied by their competent authority based on Union or national law.].