The OFI Group is constantly adapting to give investors subject to Solvency 2 the necessary support connected to the requirements of the three pillars of this regulation. It broadens its knowledge through active regulatory monitoring and benefits from daily communication with more than 120 clients within this Directive’s remit.
Market SCR taken into account according to different levels of expectation
The documented method used by the OFI Group to calculate the market SCR is incorporated in all of its tools. The calculation results can be seen in the principal funds’ monthly reports, and will very soon be available for the management mandate scope.
OFI AM’s managers all have access to SCR simulation functionalities in the management tool, to manage a market SCR budget or one of its modules. The OFI Group’s experts are therefore able to help investors to calculate and analyse the market SCR of their global portfolios and their sensitivities, from a regulatory viewpoint, to challenge their own calculations, or for monitoring purposes.
Exhaustive data on mutual funds and mandates inventories
The production of enhanced inventories in Tripartite format (e.g. Club Ampère) has been automated to ensure that delivery times are in line with clients’ needs. Investors’ data quality requirements are able to be met thanks to completeness and consistency checks, including for investments in external mutual funds.
The transmission of all of the information necessary to produce the required new QRTs (Quantitative Reporting Templates) and national specific templates is ensured for the management mandate scopes.
The Group’s teams are also able to extend these systems to all investments, in a format compatible with market systems (such as Vega, Effisoft and Addactis) for the provision of specific services.
Additional services to meet pillar 2 requirements
In addition to providing TPT (Tripartite Template) inventory and market SCR calculation services, OFI AM’s experts may monitor financial risks for the global asset scope, to help investors to adjust their investments to the level of risk that is acceptable to them.
OFI AM is also able to review long-term investment policies subject to accounting income and/or market SCR constraints using a stochastic simulation tool. Specific scenario-based analyses may also be carried out to contribute to an ORSA process.
Lastly, some clients receive assistance with specialised training for directors or operational staff.
Compliance with subcontracting requirements
OFI AM provides its clients with a comprehensive “Solvency 2 subcontracting pack” validated by an external organisation. This pack can be used to confirm the reliability expected of an asset submanager with regard to the prerequisites set out in article 49 of the Directive.
Investors are also provided with the updated documentation on the methodologies developed by the OFI Group (including calculations, ratings and CIC classifications) and the legal framework appropriate for the disclosure of market data from suppliers.