PRA is consulting on its approach to publication of Solvency 2 technical information at the end of the transitional period. It proposes: to adopt the same technical methodologies as EIOPA with limited exceptions, mainly...
Category - Insurance
FCA updates on 2nd BI case management conference
FCA has published the details of, and a provisional transcript from, the second case management conference in its business interruption insurance test case. Key directions include: the permitted interventions of the...
Barnier speaks on Brexit
Michel Barnier has spoken at the Eurofi General Assembly on UK/EU relations. He noted the desire to give the EU/UK negotiations “every chance of succeeding”. He noted he had rescheduled many other meetings...
FCA updates on Covid, cancellations and insurance
FCA has published updates on Covid-19 related cancellations and insurance claims. Its consumer guidance notes that consumers should first speak to their travel provider, and should think carefully before accepting...
FCA updates on Covid-19 delayed activities
FCA has confirmed some further delays to projects and extensions to proposed deadlines, in light of Covid-19. Various deadlines now postponed until later in 2020-or to 2021 include: The Directory of Certified Persons...
EIOPA updates on stress testing
EIOPA has published a further discussion paper on the methodological principles of insurance stress testing. Following its first paper, last year, it is now planning to add some new elements to its stress test toolbox...
FCA publishes defences in BI test case
FCA’s latest update on its business interruption insurance test case: published the sealed Court Order from the Case Management Conference on 16 June; published the Defences of the defendants to the test case...
Chancellor updates on FS laws and Brexit
Rishi Sunak has made a written statement about the UK’s approach to implementing key financial services reforms before the end of 2020. The statement notes the UK’s policy intention, and the manner in which...
EIOPA publishes findings of the Regular Supervisory Report
On 18 June, the European Insurance and Occupational Pensions Authority (“EIOPA“) published the findings of its peer review of the Regular Supervisory Report (“RSR“). The review examined how and...
PRA writes to insurers on 2019 stress test
PRA has written a Dear CEO letter to firms participating in the 2019 Insurance Stress Test. The letter covers: Covid-19 resilience: tests showed the sector was robust to downside stresses, with the highest uncertainty...
FCA updates on BI case management conference
Following the first case management conference in FCA’s test case on business interruption insurance, it has now published details of the order made by Mr Justice Butcher. The order: agrees to an expedited case in...
FCA finalises BI insurance guidance to firms
Following its consultation on 1 June, FCA has now finalised its guidance to insurers and intermediaries, setting out its expectations on how they should handle complaints and claims under business interruption policies...
FCA schedules first BI case management conference
FCA has confirmed that the first Case Management Conference before a judge in its business interruption insurance Test Case is to take place on 16 June. At the conference, the judge will be invited to consider...
Regulators update firms on revised LIBOR milestones
Since PRA and FCA wrote to the senior manager of banks and insurers responsible for LIBOR transition in January, several of the Working Group milestones discussed in that letter have been changed as a result of Covid-19...
EIOPA consults on digitalisation and the value chain
EIOPA is consulting on how the continued evolution of technology is affecting business models and bringing beneficial innovation and a new set of risks that need to be taken into account. Firms are increasingly relying...
FCA updates on BI insurance test case
FCA has published a new set of documents relating to the test case it is bringing to get clarity on the coverage of business interruption insurance during the Covid-19 crisis. It has on 10 June (today) announced that it...
Commission consults on green finance preferences
The European Commission is consulting on a set of draft delegated Regulations that would oblige AIFs and other investment funds, investment firms, insurance firms and brokers, (re)insurers and mutual funds to advise...
ESRB gives guidance on distributions
The BoE and PRA have acknowledged the ESRB recommendations on the restriction of distributions during Covid-19. They note the recommendation will apply to the UK throughout the Transition period, and also note that...
Up next from FCA
FCA’s latest Policy Development Update highlights the following publications due over the next few months: CP on marketing speculative illiquid securities to retail investors (including speculative mini-bonds); CP...
EVENT: Retail Banking Mixer Webinar
Our next r=Retail Banking Mixer will be held by webinar on 18th June at 10am. We are delighted to be joined by Rosemary Ford and Amber Andrade from Deloitte this time. The webinar continues the focus on COVID-19. Our...
FOS publishes 2019/20 data
FOS has published details of the complaints it received and dealt with in 2019/2020. It received around 270,000 complaints and dealt with nearly 300,000, with the Ombudsman making nearly 30,000 decisions. As ever, the...
FCA publishes insurance product value guidance
Following a short consultation period, FCA has now published (with a few clarifications following responses to the consultation) its finalised rules and guidance for insurers and insurance intermediaries to consider the...
Compulsory FCA survey coming to firms
FCA is to send a survey by email with a link to 13,000 solo regulated firms, aimed to helping FCA understand the impact of Covid 19 on regulated firms and their financial resilience, where the greatest impacts are for...
Full details on BI case progress
We have now written a detailed article on the progress in FCA’s Business Interruption insurance test case, including summaries of FCA’s draft guidance, and its selection of polices, wordings and assumed...
FCA updates on BI test case
FCA has updated on its progress towards its test court case on business interruption insurance policies. It has now reviewed around 500 policies from 40 insurers, and has identified 17 policy wordings that capture most...
Green guide for supervisors
The Network for Greening the Financial System has published a guide for central banks and supervisors, looking at how financial institutions have worked with green, non-green and brown financial assets, and how...
PRA updates on “prudent person” principle
PRA has updated its policy documents following its consultation on the Prudent Person principle under Solvency 2. PRA received only 7 responses to its consultation, but have made some clarificatory changes following...
FCA makes new rules
At FCA’s May Board Meeting it made 3 new sets of rules: the Covid-19 Premium Finance Instrument, which took effect from 18 May and introduced the new requirements on payment deferrals and other measures for...
PRA updates on ISPV supervision
PRA has updated on authorisation and supervision of insurance SPVs following consultation, and has published updated rules, an updated supervisory statement and an updated multi-arrangement insurance SPV new risk...
Government publishes draft EU/UK FTA
The Government has published a draft Comprehensive Free Trade Agreement between the UK and EU. Chapter 17 of the agreement relates to financial services, which it defines as “any service of a financial nature...
FCA updates on business interruption insurance test case
FCA has provided further information on what it is doing to prepare for the test case it plans to bring to clarify various uncertainties over how business interruption insurance should operate during Covid-19. FCA notes...
Statement on impact of Covid-19 on LIBOR transition – update
Further to their statement on 25 March 2020, the Working Group on Sterling Risk-Free Rates has updated its statement on the impact of Covid-19 on the timeline for firms’ LIBOR transition plans. The update states that...
FCA updates on Innovation Hub help
FCA has updated its information on requesting Innovation Hub support in light of Covid-19. It wants to hear from firms who have creative and innovative solutions to the challenges the virus is posing, and is...
FCA publishes finalised Covid-19 insurance guidance
FCA has published its finalised guidance for insurance and premium finance firms on dealing with Covid-19 and customers in temporary financial difficulty. The guidance should be complied with no later than 18 May and is...
FCA updates on Covid-19 and complaints
FCA has updated its webpage on how firms should be handling consumers’ complaints during Covid-19. The page explains that FCA has asked firms to prioritise making payments where consumers have accepted offers or...
Covid-19 insurance rules to take effect from 15 May
FCA has updated its website to state that its new guidance for insurance and premium finance firms for dealing with customers in temporary financial difficulty due to Covid-19 will now take effect from 15 May (not 13 as...
FCA sets out planned initiatives
FCA has published a grid prepared by the Financial Services Regulatory Initiatives Forum setting out the regulatory pipeline for the next 12 months. The forum comprises FCA, PRA, BoE, the PSR and the CMA, with Treasury...
FCA speaks on response to Covid-19 and Brexit
Nausicaa Delfas has spoken on FCA’s national and international response to Covid-19 and Brexit. On Covid-19, she noted: FCA’s priority to keep markets open and orderly, help firms continue to operate...
FCA updates on insurance and premises access during Covid-19
FCA has updated its webpage on insurance and coronavirus to include guidance on access to premises. It notes that some consumers may be unable to access their residential properties and some businesses may not be able...
Government sets out equivalence views
John Glen has written to the Chair of the European Scrutiny Committee explaining the Government’s stance on equivalence in financial services. The Government cannot provide great detail given the early stage of...
Industry welcomes FCA business interruption insurance action
Industry associations have welcomed FCA’s initiative to seek Court declarations on aspects of business interruption insurance cover. The ABI commented that, although the vast majority of policies do not cover...
Up next from FCA
Unsurprisingly, FCA’s recent publications have almost exclusively focused on Covid-19. However, in BAU, it still proposes: a consultation on exit fees on investment platforms and comparable firms over the summer;...
Regulator Covid-19 update 1 May
On 1 May, FCA: announced proposals for a Court declaration on business interruption claims proposed guidance for insurers on assessing whether products still offer value and appropriate action to take where they do not...
FCA seeks court ruling on business interruption insurance
FCA has announced its intention to obtain a court declaration to resolve contractual uncertainty in business interruption (“BI“) insurance cover. It is also proposing a series of measures to support both...
Professional negligence and insurance post Covid-19
Read our article about the issues professionals, their brokers and their insurers will be looking at in the light of Covid-19.
UK and Switzerland work to strengthen ties
Economiesuisse and The CityUK have been working on a joint position paper setting out how to strengthen the countries’ relationship in the time of coronavirus and in the future. In terms of financial services, the...
FCA publishes report on PPI complaint deadline
FCA has published its final report on the impact of the deadline for PPI complaints. It concludes that its 2 year communications campaign led to a significant increase in consumer awareness of the deadline and...
Regulator Covid-19 update 23 April
On 23 April: PRA followed up on its letter to insurers, noting that all insurers should consider carefully the previous letter and guidance on use of unrated assets and assessments of creditworthiness, and the...
Financial Services Bill measures
I wrote an article for Compliance Monitor on the current consultations and plans for financial services regulation under the Financial Services Bill initiative.
Regulator Covid-19 update 22 April
On 22 April FCA published a new webpage on PII cover for financial advisers. It recognises that firms may be concerned about their ability to renew their PII during the Covid-19 crisis, which may impact on their...
PRA updates on skilled persons reports
PRA has published details of the skilled persons reports it commissioned in Q3 2019/20. There were 8 in total, of which 3 related to technology and information management in banks, and 2 to controls and risk management...
FCA publishes complaints figures for H2 2019
The FCA has today published the complaints figures for regulated firms for the second half of 2019. The data showed an increase in complaints from 4.29m in the first half of 2019 to 6.02m in the second half of 2019. In...
EU Council adopts sustainable finance taxonomy
The Council of the EU (“the Council“) has adopted a regulation setting out an EU-wide classification system which will enable businesses and investors to identify economic activities which are considered...
FOS updates on Covid-19 activities
The latest edition of Ombudsman News focuses on: how it is working to help complainants during the Covid-19 crisis, including on how it has changed its helpline hours – for which it apologises but asks that it...
FCA writes to CEOs on business interruption insurance
FCA has sent a Dear CEO letter on business interruption insurance for SMEs. It says its research to date indicates that most policies have basic cover, do not cover pandemics and so would not be obliged to pay out in...
PRA publishes Business Plan
PRA has published its Business Plan for 2020/21. Like FCA, PRA comments that Covid-19 has made it reassess its plans and reprioritise its work, and it will continue to assess the effects of the outbreak on its actions...
PRA consults on fees
PRA has published its consultation on fees and levies for 2020/21. The consultation covers: the fee rates to meet the Annual Funding Requirement, which has increased by 8% from the current year, primarily because of...
Regulator Covid-19 Update 8 April
On 8 April: PRA welcomed the decision by some insurance companies to pause dividends. The decisions followed PRA’s letter of 31 March; PRA’s credit union supervision team wrote to firms explaining...
FCA consults on fees
FCA has published its fees and levies proposals for 2020/2021. Covid-19 has affected FCA’s plans, and it is taking action to protect small and medium sized firms from the burden of regulatory fees. Comments are...
FCA: List of delayed workstreams (UPDATED 7 April)
We’ve scoured the FCA website to bring you a list of the workstreams that have been delayed. Through delaying these workstreams, the FCA can focus on the evolving pressures Covid-19 is putting on firms and...
Regulator Covid-19 Update 7 April
Regulatory fatigue may be starting to set in, as there were fewer regulatory announcements directly consequent on Covid-19 on 7 April. FCA made its rules on deferring commencement of various handbook provisions on...
FCA Business Plan 20/21
The FCA published its business plan for the coming year this morning. The plan focuses around 5 key priorities for the year. It has been significantly reshaped because of coronavirus as it was intended to show the...
Regulator Covid-19 Update 6 April
On 6 April, the regulators further update their Covid-19 measures: FCA updated its expectations on solo-regulated firms in respect of the SMCR; FCA published a summary of queries it has received on client assets...
Regulator Covid-19 update 3 April
On 3 April: PRA and FCA updated dual-regulated firms on how their should deal with furloughing and compliance with the SMCR; EBA published guidelines on the criteria for public and private moratoria applied before 30...
Regulator Covid-19 Update 2 April
On 2 April, the main regulatory initiative was FCA’s emergency consultation on consumer protection measures in the regulated lending markets. Also: PRA and Treasury confirmed the delay of Basel 3.1 by one year...
Parliament Committee seeks equivalence answers
The Third Report of Session of the House of Commons European Scrutiny Committee seeks clarification on the Government’s intentions for negotiations of equivalence arrangements with the EU from the end of the...
FOS confirms case fees and releases 2020/21 budget
FCA has confirmed FOS’ 2020/21 budget. Key elements include: continuing to allow 25 “fee” cases for firms outside the group account fee arrangement – so 90% of firms will pay no case fees; 50...
Regulator Covid-19 update 1 April
Further updates from the regulators, in addition to FCA’s Dear CEO letter to retail investment firms, include: PRA welcoming the agreement by the boards of large UK banks to suspend dividends and buybacks on...
Lords calls for UK/EU cooperation
The House of Lords EU Financial Affairs Committee has written to Rishi Sunak urging the government to set up a structured dialogue with the EU that will support cross-border financial services. It wants: to minimise...
Treasury Committee seeks ABI answers on insurer behaviour
The Treasury Committee has written to the ABI, asking for information to help understand how the insurance industry is responding to coronavirus and to FCA’s guidance. The letter asks: how many members have ceased...
Regulator Covid-19 Update 26 March
On 26 March: FCA, while confirming its intention to be flexible to allow firms to keep operating, noted that they should also be planning ahead and ensuring sound management of their financial resources. It says buffers...
Government confirms extension of TTP
In a statement to Parliament, Lord Agnew of Oulton, the Minister of State, has noted a statement from Treasury that it expects “in general” the same laws and rules to apply as the transition period ends, it...
Covid-19 regulator update 24 March
Late on 23 and on 24 March: PRA announced amendments to regulatory reporting for insurers in response to EIOPA’s recommendations. There will be between 2-8 weeks’ delay for most aspects of harmonised...
FCA sets out Covid-19 expectations on insurers
FCA has set out its position on how it expects insurers to act given the unprecedented impact of Covid-19. Above all, it expects firms to consider very carefully the needs of customers and to be flexible in how they...
EIOPA takes Covid-19 action
EIOPA has set out its expectations on insurers as they try to manage the risks Covid-19 presents. Its key messages are: the importance of business continuity. It says regulators can help by being flexible on supervisory...
FCA issues Covid-19 guidance for consumers
The FCA has explained that is working closely with the Government, the Bank of England, the Payment Systems Regulator and firms to ensure markets continue to work well for consumers. This includes making regular contact...
EU writes to Chancellor on equivalence
Valdis Dombrovskis has written to Rishi Sunak on equivalence assessments. The letter merely notes that both sides should start to assess equivalence as soon as possible, on the basis of the Political Declaration, with a...
FOS looks at insurance coverage
FOS’s latest Ombudsman News looks at: coronavirus: so far, FOS has not seen many complaints on the impact of the virus, but expects it will see more complaints particularly in relation to travel insurance, medical...
Treasury feeds back on pre-paid funeral plans
Treasury has published the outcome of its consultation on pre-paid funeral plans. Respondents to its consultation were concerned at current consumer detriment, and called for compulsory regulation for the sector. The...
Treasury consults on UK/Gibraltar FS access
Treasury is consulting on the post-Brexit market access arrangements between the UK and Gibraltar. Constitutionally, Gibraltar is an Overseas Territory with internal self-government. Responsibility for financial...
EBA says no need for LGD on credit insurance claims
EBA has published an Opinion on treatment of credit insurance in the prudential framework. It has previously consulted on credit risk mitigation for institutions that apply the IRB approach with own estimates of Loss...
PRA writes to chairs on board diversity
PRA has written to the chairs of dual regulated firms reinforcing the importance it places on diversity within boards for improving decision making and providing effective challenge. It reminds firms it expects them to...
EIOPA speaks on digital finance risks
Fausto Parente, EIOPA executive director, has spoken on managing the risks of digital finance in cyber underwriting. He spoke of the value of data to insurers in enabling them to customise customer products, but the...
FCA publishes life insurance outsourcing review
FCA has published the findings from its review into outsourcing in the life insurance sector. The review stemmed from FCA’s awareness that the sector relies heavily on outsourcing and third party providers, and...
Lloyd’s launches new cryptocurrency wallet insurance solution
A Lloyd’s syndicate has launched the first liability to protect against losses arising from theft of, or malicious hacks to, cyptocurrencies held in online wallets. The policy will have dynamic limits that...
FCA makes new travel insurance and other rules
FCA has made 3 sets of new rules. changes to COBS 19 to ensure that pension scheme members can properly find the information they need about costs and charges to ensure they get good value for money from their pension...
ECB Speech: Climate Change in FS
Christine Lagarde made a speech on climate change and the financial sector on 27 February 2020. Christine identified both the threat and significant opportunity caused by climate change. She urged central banks to...
Commission publishes PRIIPs information test results
The Commission has carried out a project testing the effectiveness of presented information to retail investors within the PRIIPs framework. It sent out 10 different versions of performance scenarios and past...
More UK/EU policies revealed
The Government has published a policy paper on its approach to the future relationship with the EU. It sets out the Government’s suite of proposals, based around the desire for a comprehensive Free Trade...
Barnier to be EU negotiator on post-Brexit issues
The Council of the EU has adopted a decision authorising negotiations between the EU and UK towards a new partnership and authorising the European Commission, in the person of Michel Barnier, as the EU negotiator. The...
Dormant Assets Scheme Consultation
This morning, HM Treasury published a consultation document setting out its proposals for expanding the dormant assets scheme. The consultation discusses the background to the current scheme and then sets out proposals...
FSB priorities published
The FSB published a letter addressed to all G20 Finance Ministers and Central Bank Governors on 18 February 2020. The letter sets out the areas that the FSB are focusing their efforts on. All of the measures are to...
Financial services after Brexit updates
The EU Financial Affairs Sub-committee has opened an inquiry into financial services after Brexit and has been taking evidence. Most recently it has been questioning the BoE and FCA. They largely discussed the key...
FCA publishes annual sector views
The FCA has just published its annual sector views report which comprises a state of the nation in terms of the financial services industry. The report sets out the drivers for change in each financial services sector...
EP publishes negotiating mandate with UK
The European Parliament has published its proposed mandate for a new partnership with the UK. The declaration acknowledges that the “close relationship” that will subsist and which, according to the...
FCA guidance to GI distribution chain
We have written an article about FCA’s findings on potential harm caused by the general insurance distribution chain and its guidance to firms in the sector setting out its expectations of them.
Up next from FCA
The latest Policy Development Update highlights the following publications before the end of Q1 2020: policy statement on fees and levies; consultation on exit fees in investment platforms and comparable firms;...
EIOPA updates on cloud outsourcing guidelines
EIOPA has confirmed its guidelines on outsourcing to cloud service providers are now available to national supervisors. The guidelines address: how to determine whether cloud services are within the scope of...
Regulators warn firms on selling personal data
The FCA, ICO and FSCS have warned regulated firms and insolvency practitioners of the need to be responsible when dealing with personal data. The regulators have become aware of sales of client data to CMCs either...
ESMA outlines sustainable finance strategy
On 6 February, ESMA published its sustainable finance strategy which sets out how ESMA plans to focus on sustainability. ESMA’s key priorities include: completing the regulatory framework on transparency...