RR Donnelley Investment Management Solutions provides updates on the upcoming Solvency II and PRIIPS regulations.

1. REGULATORY UPDATES – AUGUST 2015
PRIIPS & SOLVENCY II

2. 1.0 PRIIPS
1.1 News Dated 23 June 2015 – 2nd PRIIPs Technical Discussion Issued by European Supervisory
Authorities
The second discussion paper released by the European Supervisory Authorities (EBA, EIOPA & ESMA) explores
the possible methodologies to determine and display risks, performance and costs in the Key Information
Document (KID) for PRIIPs. The closing date for submission of comments to the ESAs is 17 August 2015. The
ESAs will issue a final consultation paper setting out the draft Regulatory Technical Standards under Article 8 of
the PRIIPs regulation in the autumn of 2015.
Click here to view the PRIIPs Discussion Paper:
1.2 PRIIPs ALFI Working Group
Members of the ALFI PRIIPs KID working group are currently preparing responses to the second discussion paper
issued by the European Supervisory Authorities (EBA, EIOPA & ESMA) in June. Key points in the discussion paper
highlighted by the ESAs as challenging include sections from the PRIIPs KID document: “What are the risks and
what could I get in return” and “What are the costs”. The ALFI working group aims to have a final set of responses
submitted to the ESAs by mid August. These responses will subsequently be published on the ALFI website.
Responses by ALFI on the first PRIIPs discussion paper were published in February of this year and can be viewed
here.
1.3 Word on the Street – PRIIPs
As we await the final technical standards to ascertain the layout and content of the PRIIPs KID document, one of
the biggest challenges is the implementation timeline. It is expected that we will only receive final regulatory
technical standards in March of 2016. This leaves very little time for firms to pull together a fully functioning
operational model that will adhere to the PRIIPs regulation. One key consideration is the “go live” PRIIPs date of
December 2016 which also coincides with the annual updates under the UCITS KIID regulation.
Steps which could to be taken now in preparation for implementation of the PRIIPs regulation include; classifying
the products in scope, monitoring developments in the Level 2 discussion paper and how this may impact the
operations of the business and understanding what new or existing data points are needed for the creation and
publication of the PRIIPs KID document.

3. 2.0 SOLVENCY II
2.1 News dated 11 May 2015 – PRA Solvency II Regulatory Reporting Working Group
Notes issued from the last meeting of the Prudential Regulation Authority (PRA) Solvency II regulatory reporting
working group contained questions to the PRA on the completion of asset data templates in the preparatory phase
of Solvency II, held in July 2015. Insurance firms highlighted that the biggest issue for the industry is the completion
of the asset data templates. Questions geared towards the tolerance levels the Bank of England would display if
incomplete asset data is submitted in the preparatory phase. The PRA remarked that every effort should be made
to gather the necessary asset data but will identify gaps and benchmark these against other firms to understand
the full extent of the issue. The PRA pointed out that full compliance will be required once Solvency II goes live on
the 1 January 2016.
For full article, please click here.
2.2 Word on the Street – Solvency II
With now only months to go until the Solvency II regulation goes live, asset managers will be planning to pick up
the pace to deliver Solvency II compliant asset data to their respective insurance firms. However, there is still a way
to go in terms of communication of requests from insurance firms to the asset management community.
Recent comments from asset management firms regarding Solvency II asset data:
Look through is considered an area of concern for asset managers as they will have to reveal the full exposure of
the fund holdings to include fund of funds in order to capture all material risks. This creates a further challenge for
asset managers in terms of liaison with other asset managers.
Reporting timelines are also considered an issue as it is expected insurance firms will more than likely require this
information on a monthly basis. We expect communication between insurers and asset managers to pick up in the
last quarter of 2015 as we approach the final date for Solvency II going live in 2016.

4. RR Donnelley PRIIPs KID Solution RR Donnelley Solvency II Solution
Fully outsourced, SAAS or hybrid solutions
available:
 Calculation – build in calculation engines
(risk, reward)
 Production – sophisticated workflow
captures activities of multiple stakeholders
 Translation – in-house EU language
solutions
 Review, workflow and transparency –
full audit trail
 Distribution – new regulators; insurance
sales channel
Quality assured, timely provision of Solvency II
compliant asset data:
 Data management – integration, enrichment
and classification
 Quality approved data – automatic data
verification and audit trail
 Solvency II report production – on-
demand, automated reports and SCR
calculations
 Report distribution – monthly / quarterly,
bespoke reports in Solvency II template,
QRTs or customised formats
For further information on PRIIPs and Solvency II please contact our Regulatory Solutions Manager:
Patricia Myles
Tel +44 203 047 6562
patricia.myles@rrd.com
RR Donnelley (Nasdaq:RRD) helps organisation communicate more effectively by working to create, manage, produce, distribute and process
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__________________________________________________________________________________________________________________
LONDON
John McCann
Tel +44 203 047 6187
john.p.mccann@rrd.com
DUBLIN
Robert McNamara
Tel +353 1 818 9971
Robert.mcnamara@rrd.com
LUXEMBOURG
André Lafeber
Tel. +352 47 17 55 24
andre.lafeber@rrd.com