FCA has issued a policy statement setting out near-final rule changes required to FCA’s Handbook to incorporate the new regulated activity of insurance risk transformation.
The policy statement includes feedback on the previous two consultation papers and will be of interest to:
- insurance special purpose vehicles (ISPVs) and firms considering becoming involved in setting up ISPVs or issuing insurance linked securities;
- firms that undertake outsourced activities on behalf of ISPVs;
- professional advisers to ISPVs; and
- insurers and reinsurers that want to use ISPVs as part of their risk mitigation strategy.
FCA has published near-final rules because the rules must refer to the Risk Transformation Regulations 2017, which were laid before Parliament on 12 October 2017. FCA will finalise its rules when the parliamentary process is complete, taking into account any further changes to the Regulations.