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Recital 7

Recital 7

(7)The objective of transparent, prudent, reliable and consistent methods to determine the technical information on the relevant risk-free interest rate term structures over time should also apply at the level of the components, and in particular, the volatility adjustment. In order to ensure transparency, prudence, reliability and consistency over time, the method to determine the technical information on the volatility adjustment applied by the European Insurance and Occupational Pensions Authority (EIOPA), in particular the activation of the country component as set out in Article 77d(4) of Directive 2009/138/EC, should be re-examined where evidence shows that the method fails to meet the objectives, and as part of the Commission review under Article 77f(3) of Directive 2009/138/EC.

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