81 FR 2965 - Notice of Intent To Initiate Covered Agreement Negotiations With the European Union
DEPARTMENT OF THE TREASURY
UNITED STATES TRADE REPRESENTATIVE Federal Register Volume 81, Issue 11 (January 19, 2016)
UNITED STATES TRADE REPRESENTATIVE
Federal Register Volume 81, Issue 11 (January 19, 2016)
| Page Range | 2965-2965 | |
| FR Document | 2016-00856 |
[Federal Register Volume 81, Number 11 (Tuesday, January 19, 2016)] [Notices] [Page 2965] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-00856] [[Page 2965]] ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY UNITED STATES TRADE REPRESENTATIVE Notice of Intent To Initiate Covered Agreement Negotiations With the European Union AGENCY: Department of the Treasury, Departmental Offices; United States Trade Representative, Services and Investment. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: This notice announces that the Department of the Treasury and the United States Trade Representative intend to initiate negotiations to enter into a covered agreement with the European Union (EU) and is intended to promote transparency, stakeholder awareness, and public engagement. DATE: Effective date: January 19, 2016. FOR FURTHER INFORMATION CONTACT: Treasury: Philip J. Goodman, Senior Insurance Regulatory Policy Analyst, Federal Insurance Office, (202) 622-1170; Kevin K. Meehan, Policy Advisor, Federal Insurance Office, (202) 622-7009. USTR: Sarah C. Ellerman, Director, Services & Investment, (202) 395-9556. SUPPLEMENTARY INFORMATION: Under Title V of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Federal Insurance Office Act of 2010, hereinafter the FIO Act), the Secretary of the Treasury (Treasury) and the United States Trade Representative (USTR) are authorized to jointly negotiate a ``covered agreement'' with one or more foreign governments, authorities, or regulatory entities. A covered agreement is a ``written bilateral or multilateral agreement regarding prudential measures with respect to the business of insurance or reinsurance.'' The FIO Act states that Treasury and USTR shall consult with the Committee on Financial Services and the Committee on Ways and Means of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs and the Committee on Finance of the Senate (the four Committees) before initiating negotiations of a covered agreement, during such negotiations, and before entering into any such agreement. On November 20, 2015, Treasury and USTR jointly sent identical letters to the Chair and Ranking member of each of the four Committees. The text of the letters reads: We write because we intend to initiate negotiations to enter into a covered agreement with the European Union (EU). A covered agreement is a ``written bilateral or multilateral agreement regarding prudential measures with respect to the business of insurance or reinsurance.'' The United States and the EU are the two largest insurance markets in the world and both markets present important opportunities for organic and acquisition-based growth for insurers and reinsurers. A covered agreement with the EU would level the regulatory playing field for U.S.-based insurers and reinsurers operating there, and further confirm that the existing U.S. insurance regulatory system serves the goals of insurance sector oversight, policyholder protection, and national and global financial stability. The Federal Insurance Office (FIO) Act of 2010 authorizes the Secretary of the Treasury (Treasury) and the United States Trade Representative (USTR) jointly to negotiate a covered agreement with one or more foreign governments, authorities, or regulatory entities. A covered agreement must ``relate[] to the recognition of prudential measures with respect to the business of insurance or reinsurance that achieves a level of protection for insurance or reinsurance consumers that is substantially equivalent to the level of protection achieved under State insurance or reinsurance regulation.'' \1\ --------------------------------------------------------------------------- \1\ 31 U.S.C. 313(r)(2)(B). Moreover, the FIO Act defines the term ``substantively equivalent to the level of protection achieved.'' 31 U.S.C. 313(r)(9). --------------------------------------------------------------------------- In the United States, state insurance regulators have general authority over the business of insurance (including reinsurance). Treasury and USTR support the U.S. integrated system of state and federal insurance regulation, including the primary role of state insurance regulators as supervisors of the business of insurance. Treasury and USTR will not enter into a covered agreement with the EU unless the terms of that agreement are beneficial to the United States. State insurance regulators will have a meaningful role during the covered agreement negotiating process. In particular, covered agreement negotiations with the EU will seek to address the following prudential measures: (1) obtain treatment of the U.S. insurance regulatory system by the EU as ``equivalent'' to allow for a level playing field for U.S. insurers and reinsurers operating in the EU; (2) obtain recognition by the EU of the integrated state and federal insurance regulatory and oversight system in the United States, including with respect to group supervision; (3) facilitate the exchange of confidential regulatory information between lead supervisors across national borders; (4) afford nationally uniform treatment of EU-based reinsurers operating in the United States, including with respect to collateral requirements; and (5) obtain permanent equivalent treatment for the solvency regime in the United States and applicable to insurance and reinsurance undertakings. Effective January 1, 2016, the EU will implement insurance regulatory reform (known as Solvency II) that will subject an insurer to disadvantageous treatment if the insurer's country of domicile is not recognized by the EU as ''equivalent'' under the provisions of Solvency II. Through negotiating a covered agreement, Treasury and USTR will seek to ensure that U.S. insurers and reinsurers will be permitted to operate in the EU on the same regulatory terms as insurers and reinsurers domiciled in the EU or in jurisdictions deemed equivalent under Solvency II. The FIO Act provides that Treasury and USTR jointly shall consult with the Financial Services and Ways and Means Committees of the House of Representatives and the Banking, Housing, and Urban Affairs and Finance Committees of the Senate before initiating negotiations of a covered agreement, during such negotiations, and before entering into any such agreement. Treasury and USTR welcome the opportunity to meet with Committee members and staff to consult before we initiate negotiations on this covered agreement and on developments during the negotiations. The letters can also be found at the following link: https://www.treasury.gov/initiatives/fio/reports-and-notices/Documents/Covered%20Agreement%20Letters%20to%20Congress.pdf. Michael T. McRaith, Director, Federal Insurance Office, U.S. Department of the Treasury. Sarah C. Ellerman, Director, Services & Investment, Office of the United States Trade Representative. [FR Doc. 2016-00856 Filed 1-15-16; 8:45 am] BILLING CODE 4810-25-P
![Federal Register / Vol. 81, No. 11 / Tuesday, January 19, 2016 / Notices 2965
DEPARTMENT OF THE TREASURY multilateral agreement regarding prudential and USTR will seek to ensure that U.S.
measures with respect to the business of insurers and reinsurers will be permitted to
UNITED STATES TRADE insurance or reinsurance.’’ The United States operate in the EU on the same regulatory
REPRESENTATIVE and the EU are the two largest insurance terms as insurers and reinsurers domiciled in
markets in the world and both markets the EU or in jurisdictions deemed equivalent
Notice of Intent To Initiate Covered present important opportunities for organic under Solvency II.
and acquisition-based growth for insurers The FIO Act provides that Treasury and
Agreement Negotiations With the and reinsurers. A covered agreement with the USTR jointly shall consult with the Financial
European Union EU would level the regulatory playing field Services and Ways and Means Committees of
AGENCY: Department of the Treasury, for U.S.-based insurers and reinsurers the House of Representatives and the
operating there, and further confirm that the Banking, Housing, and Urban Affairs and
Departmental Offices; United States
existing U.S. insurance regulatory system Finance Committees of the Senate before
Trade Representative, Services and serves the goals of insurance sector oversight, initiating negotiations of a covered
Investment. policyholder protection, and national and agreement, during such negotiations, and
ACTION: Notice. global financial stability. before entering into any such agreement.
The Federal Insurance Office (FIO) Act of Treasury and USTR welcome the opportunity
SUMMARY: This notice announces that 2010 authorizes the Secretary of the Treasury to meet with Committee members and staff
the Department of the Treasury and the (Treasury) and the United States Trade to consult before we initiate negotiations on
United States Trade Representative Representative (USTR) jointly to negotiate a this covered agreement and on developments
intend to initiate negotiations to enter covered agreement with one or more foreign during the negotiations.
into a covered agreement with the governments, authorities, or regulatory
The letters can also be found at the
European Union (EU) and is intended to entities. A covered agreement must ‘‘relate[]
to the recognition of prudential measures following link:
promote transparency, stakeholder with respect to the business of insurance or https://www.treasury.gov/initiatives/fio/
awareness, and public engagement. reinsurance that achieves a level of reports-and-notices/Documents/Covered%
DATE: Effective date: January 19, 2016. protection for insurance or reinsurance 20Agreement%20Letters%20to%20Congress.
FOR FURTHER INFORMATION CONTACT: consumers that is substantially equivalent to pdf.
Treasury: Philip J. Goodman, Senior the level of protection achieved under State
insurance or reinsurance regulation.’’ 1 Michael T. McRaith,
Insurance Regulatory Policy Analyst,
In the United States, state insurance Director, Federal Insurance Office, U.S.
Federal Insurance Office, (202) 622– Department of the Treasury.
regulators have general authority over the
1170; Kevin K. Meehan, Policy Advisor, business of insurance (including Sarah C. Ellerman,
Federal Insurance Office, (202) 622– reinsurance). Treasury and USTR support the
7009. Director, Services & Investment, Office of the
U.S. integrated system of state and federal United States Trade Representative.
USTR: Sarah C. Ellerman, Director, insurance regulation, including the primary
Services & Investment, (202) 395–9556. [FR Doc. 2016–00856 Filed 1–15–16; 8:45 am]
role of state insurance regulators as
supervisors of the business of insurance. BILLING CODE 4810–25–P
SUPPLEMENTARY INFORMATION:
Under Title V of the Dodd-Frank Wall Treasury and USTR will not enter into a
Street Reform and Consumer Protection covered agreement with the EU unless the
terms of that agreement are beneficial to the DEPARTMENT OF VETERANS
Act (the Federal Insurance Office Act of
United States. State insurance regulators will AFFAIRS
2010, hereinafter the FIO Act), the have a meaningful role during the covered
Secretary of the Treasury (Treasury) and agreement negotiating process.
the United States Trade Representative Advisory Committee on Disability
In particular, covered agreement Compensation, Notice of Meeting
(USTR) are authorized to jointly negotiations with the EU will seek to address
negotiate a ‘‘covered agreement’’ with the following prudential measures: (1) obtain The Department of Veterans Affairs
one or more foreign governments, treatment of the U.S. insurance regulatory (VA) gives notice under the Federal
authorities, or regulatory entities. A system by the EU as ‘‘equivalent’’ to allow for Advisory Committee Act, 5 U.S.C. App.
covered agreement is a ‘‘written bilateral a level playing field for U.S. insurers and
2, that the Advisory Committee on
reinsurers operating in the EU; (2) obtain
or multilateral agreement regarding Disability Compensation (Committee)
recognition by the EU of the integrated state
prudential measures with respect to the and federal insurance regulatory and will meet on March 21–22, 2016. The
business of insurance or reinsurance.’’ oversight system in the United States, Committee will meet at 1800–G Street
The FIO Act states that Treasury and including with respect to group supervision; Northwest, Washington, DC 20001, on
USTR shall consult with the Committee (3) facilitate the exchange of confidential the Sixth Floor in Conference Room
on Financial Services and the regulatory information between lead 645A. The sessions will begin at 8:30
Committee on Ways and Means of the supervisors across national borders; (4) afford a.m. and end at 4:30 p.m. each day. The
House of Representatives, and the nationally uniform treatment of EU-based meeting is open to the public.
Committee on Banking, Housing, and reinsurers operating in the United States, The purpose of the Committee is to
including with respect to collateral
Urban Affairs and the Committee on advise the Secretary of Veterans Affairs
requirements; and (5) obtain permanent
Finance of the Senate (the four equivalent treatment for the solvency regime on the maintenance and periodic
Committees) before initiating in the United States and applicable to readjustment of the VA Schedule for
negotiations of a covered agreement, insurance and reinsurance undertakings. Rating Disabilities. The Committee is to
during such negotiations, and before Effective January 1, 2016, the EU will assemble and review relevant
entering into any such agreement. implement insurance regulatory reform information relating to the nature and
On November 20, 2015, Treasury and (known as Solvency II) that will subject an character of disabilities arising during
asabaliauskas on DSK5VPTVN1PROD with NOTICES
USTR jointly sent identical letters to the insurer to disadvantageous treatment if the service in the Armed Forces, provide an
Chair and Ranking member of each of insurer’s country of domicile is not ongoing assessment of the effectiveness
the four Committees. The text of the recognized by the EU as ’’equivalent’’ under
of the rating schedule, and give advice
the provisions of Solvency II. Through
letters reads: on the most appropriate means of
negotiating a covered agreement, Treasury
We write because we intend to initiate responding to the needs of Veterans
negotiations to enter into a covered 1 31 U.S.C. 313(r)(2)(B). Moreover, the FIO Act relating to disability compensation.
agreement with the European Union (EU). A defines the term ‘‘substantively equivalent to the The Committee will receive briefings
covered agreement is a ‘‘written bilateral or level of protection achieved.’’ 31 U.S.C. 313(r)(9). on issues related to compensation for
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Document Created: 2016-01-16 01:10:47
Document Modified: 2016-01-16 01:10:47
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Contact | Treasury: Philip J. Goodman, Senior Insurance Regulatory Policy Analyst, Federal Insurance Office, (202) 622-1170; Kevin K. Meehan, Policy Advisor, Federal Insurance Office, (202) 622-7009. | |
| FR Citation | 81 FR 2965 |
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