Category Insurance

FCA consults on consumer contract variations

FCA is consulting on guidance for firms setting out what factors under the Consumer Rights Act they should take into account when they are drafting and reviewing variation terms. The draft guidance sets out a list of things FCA says firms should take into account, which would include: how valid the reason for variation is […]

PRA publishes policy statement on financial management for insurers

Following its consultation on effective financial management and planning for insurance firms and groups, the PRA has now published its final policy statement PS10/18, and Supervisory Statement SS4/18, ‘Financial management and planning by insurers’. The Supervisory Statement (which has been modified in the light of responses to the consultation) includes a framework for the: development […]

Financial Guidance and Claims Act gets Royal Assent

The Financial Guidance and Claims Act has received Royal Assent. The Act: establishes a single financial guidance body, and sets out its objectives, functions and funding details. It also sets out requirements on regulators to make guidance and permits the making of regulations that ban unsolicited direct marketing relating to pensions and other financial products […]

ABI and BIBA launch principles for premiums

ABI and BIBA have published a set of guiding principles and action points that insurers and brokers should follow, which the associations intend will address some of the issues that currently lead to excessive differences between new and renewal premiums. The principles apply to home, motor and travel insurance, but exclude policies such as pet […]

Up next from FCA

FCA’s latest Policy Development Update promises over the next couple of months the overdue feedback on fees and levies policy proposals with consultation on rates proposals.  No dates are set for any other key papers.

Treasury makes IDD perimeter law changes

Treasury has made the Insurance Distribution (Regulated Activities and Miscellaneous Amendments) Order 2018 and laid it before Parliament on 1 May. The Order makes changes, mainly to the RAO, to reflect the changes to the regulatory perimeter consequent on IDD implementation and will fully come into force on 1 October. The main changes generally update […]

FCA publishes new FSCS funding rules

Following its consultation in 2017, the FCA has now published its final rules on reformed FSCS funding.  These rules will take effect from April 2019. Additionally the FCA has opened a consultation on draft rules relating to Professional Indemnity Insurance requirements for Personal Investment Firms, CP 18/11.  The proposed rules will require that policies do […]

FCA makes new rules

FCA (in one case together with FOS) has made several instruments amending the Handbook. Changes include: changes to FEES (from 1 April) to ensure better mapping of tariff data and that Directive and non-Directive insurers are treated consistently. Further change creates a new fee-block for consumer credit lending as a mechanism for collecting the levy for […]

EU updates on retail product distribution

The European Commission has reported that consumers still face some obstacles when trying to compare investment funds, life insurance or personal pensions. The report finds that recent EU measures, such as MiFID 2 and the PRIIPs Regulation, should help, but that consumers find a great variance in costs for similar product categories cross-border. It also says most consumers […]

Claims Management regulations published for consultation

As part of the proposed process of transferring the regulation of Claims Management Companies to the FCA, HM Treasury is consulting on draft regulations  that will form part of a final statutory instrument creating a new framework of regulation for Claims Management Companies (CMCs). The draft regulations set out the proposed permissions that CMCs will […]

UK and US announce working group creation

HM Treasury and the US Treasury Department have announced the formation of a Financial Regulatory Working Group, to formalise engagement on bilateral regulatory cooperation. The group is scheduled to meet twice a year

FCA creates new basic advice page

FCA has created a new page on its website explaining the basic advice regime under MiFID 2 and the IDD. It explains it needed to update its guidance to firms to explain the impact of these pieces of legislation. In particular, it addresses how it needed to apply some MiFID 2 requirements (or “at least […]

FCA publishes latest complaints data

The latest complaints data from FCA shows 3.76m complaints were received by firms in the second half of 2017. This is a significant increase on the previous half year, with 1.55 million complaints relating to PPI – 40% more than the previous half year and the highest level for over 4 years. Similarly, firms paid […]

BEIS publishes Green Paper on modernising consumer markets

The Department for Business, Energy and Industrial Strategy is consulting on proposals which, among other issues, seek to to improve the consumer experience in regulated markets for utilities, telecommunications and financial services and to ensure consumers buying and selling online benefit from new technology and business models, and have appropriate protection for their personal data. […]

PRA publishes ‘Dear CEO’ letter on capital extractions by insurance firms in run-off

The PRA has published a ‘Dear CEO‘ letter which addresses capital extraction requests from insurance firms in run-off, and firms not supplying sufficient information to the PRA. It reminds firms of the need to closely consider Supervisory Statement 4/14 on capital extractions, and sets out illustrations of the types of information they expect to see […]

ESAs report on key risks for H2 2017

The Joint Committee of the European Supervisory Authorities has published its report for the second half of 2017.  This report highlights the following potential sources of instability: repricing of risk premia uncertainties regarding the terms of Britain’s exit from the EU; cyber attacks; and climate change. The report urges firms and supervisory authorities to seek […]

PRA consults on Solvency II

The PRA has today published two consultation papers relating to Solvency II. The first consultation paper “Solvency II: External audit of the public disclosure requirement” sets out the PRA’s proposals rule that requires the external audit of parts of the Solvency and Financial Condition Report, under Rule 2 of the External Audit part of the […]

FCA and PRA publish business plans

The FCA and the PRA have both published their business plans for 2018/2019. The FCA’s business plan shines a spotlight on consumer protection, including in relation to pension products and high-cost credit, as an area of concern for the forthcoming year, as well as ongoing programmes such as Brexit, and firms’ culture and governance (including […]

FCA and PRA consult on 2018/2019 regulated fee and levy rate proposals

The FCA and PRA have, separately, published consultation papers on regulated fees and levies for 2018/19. In its consultation paper, the FCA sets out the proposed 2018/19 regulatory fees and levies for itself, the Financial Ombudsman Service, the Money Advice Service, the Pension Wise service and HM Treasury’s illegal money lending expenses.  The FCA also […]

CMA to continue insurance price comparison website investigation

The CMA has confirmed that it has decided to continue the investigation into a price comparison website’s (PCW) use of certain ‘most favoured nation’ clauses in its contracts with home insurance providers. In the context of PCWs, ‘most favoured nation’ clauses require the provider of a product  that wishes to offer their product on the […]

FCA cross over insurance renewals

FCA has warned firms it is prepared to take action against those who have failed to implement rules that have now been in force for a year designed to clearly show customers who are due to renew their general insurance the premium they paid the previous year. RAC has just agreed to contact customers after […]

PRA and BoE’s approach to authorisation and supervision in preparation for Brexit

The Bank of England (BoE) has published a press release setting out its regulatory approach to preparations for Brexit, including its approach to the authorisation and supervision of international banks, insurers and central counterparties (CCP). The update follows the agreement between the UK and EU27 that there should be an implementation period until the end of 2020 as […]

Council of the EU approves EU-US insurance agreement

Following the announcement in September last year that the EU and the USA signed a bilateral agreement on insurance and reinsurance prudential measures, the Council of the EU has now formally adopted a decision to conclude this agreement.  This agreement can now provide legal certainty  to EU and US insurers in the application of regulatory […]

Complaints Commissioner concerned about information sharing between FOS and FCA

In a recent report the Complaints Commissioner expressed concern about the absence of published information about how and in what circumstances information about live ombudsman cases may be shared between the FOS and the FCA. The complaint alleged that the FCA illegally influenced the FOS in its handling of complaints against a firm represented by […]

FCA sets out supervision and enforcement approach

FCA has published a draft of its approach to enforcement and supervision. The documents follow its publication of its Mission, in which it committed to publishing a series of documents setting out how it carries out its main activities. The approach to supervision explains FCA’s commitment to being forward-looking and pre-emptive, focusing on firms’ cultures […]

FCA outlines approach to authorisation

Sarah Rapson has spoken of FCA’s approach to authorising firms. She focused on FCA’s use of authorisation as a way to prevent harm, and its focus on using it proportionately. As a result, the information it asks firms for, and the degree of scrutiny it gives it, has to be linked to its assessment of […]

FCA looks back on past 5 years

John Griffith-Jones has reflected on FCA’s first 5 years of operation, since it took over from the FSA.  He outlined: highlights – specifying FCA’s engagement with pension exit charges, general insurance renewals, interest-only mortgage work, FX and LIBOR issues and reform, MiFID 2 implementation, the Innovation Hub, market abuse enforcement, fixing PPI, the asset management […]

ABI writes to FCA on Brexit issues

The ABI has written to Andrew Bailey highlighting the issues its members are facing in meeting their duty to treat customers fairly, in the context of communications with customers over Brexit.  The letter welcomes the December communications on authorisation of EEA branches of insurers, and says members will assume this will happen, even though it […]

FCA Discussion Paper on transforming culture in financial services

As part of its ongoing work on culture and governance, the FCA has published a discussion paper, comprising a series of essays from academics and industry thought leaders covering: what a ‘good’ culture might look like; the role of regulation and regulators; how firms might go beyond incentives; and how to change behaviour for the […]

EU Council confirms IDD delay

Following the publication of the provisional Directive text postponing the date of application of IDD to 1 October 2018, the Council has now confirmed that the directive has been adopted, and applies with retroactive effect from 23 February 2018.

FCA surveys firms passporting into UK

As part of its preparation for Brexit, the Government announced in December 2017 that it would, if necessary, introduce legislation to enable a ‘temporary permission’ scheme for EEA firms and funds which, following Brexit, can no longer rely on their passporting rights to do business in the UK. The FCA has published a survey to […]

ABI publishes framework for the management of ‘gone-away’ customers in the life and pensions market

The Association of British Insurers (ABI) has produced a framework designed to help firms operating in the life and long-term savings market to better identify, trace, verify and manage those customers with whom they have lost contact (‘gone-aways’). The voluntary framework, which consists of 11 principles, is intended to support providers in developing, maintaining and […]

LMA updates market model agreements for GDPR and Criminal Finances Act 2017

In light of the Criminal Finances Act, which already has effect, and GDPR, which applies from 25 May 2018, the Lloyd’s Market Association (LMA) has updated the following market model agreements: Binding Authority Agreement – LMA3113 Consortium Agreement – LMA3145 TPA Agreement – LMA9008A On the same webpage, the LMA has also published model endorsements for […]

Insurance Europe publishes position paper on the consequences of Brexit on existing contracts

Insurance Europe has published a position paper on the consequences of Brexit on existing insurance contracts. The paper discusses: existing (re)insurance contracts that may be affected by Brexit and how customers may be affected; what is currently permitted by passporting rights; when grandfathering is the only solution for existing contracts; and how to allow for […]

Council of EU publishes provisional text of Directive amending IDD transposition date

Further to the European Parliament’s vote on 1 March 2018, the Council of the EU has published the provisional text of the Directive amending IDD as regards the date of application of Member States’ transposition measures (the Directive). The Directive is intended to apply with retrospective effect from 23 February. The next steps will be […]

LMA publishes IDD guidance for UK coverholders

The Lloyd’s Market Association (LMA) has published guidance on the IDD for UK coverholders. The guidance covers some aspects of IDD, including: product oversight and governance; product information (including the IPID); identifying client needs and advising; and information requirements. While certain part of the guidance are specific to the Lloyd’s market, the LMA has discussed […]

FCA publishes second set of data on general insurance value measures pilot

Following on from the general insurance add-ons market study, FCA piloted the publication of value measures data, which includes claims frequencies, claims acceptance rates and average claims pay-outs by an insurer in respect of certain general insurance products. The pilot was designed for FCA to develop and assess the impact of the value measures data. […]

EIOPA publishes final set of advice to the Commission on Solvency 2 Delegated Regulation

The European Insurance and Occupational Pensions Authority (EIOPA), has published its second and final set of advice to the European Commission on the Solvency Capital Requirement (SCR) formula under the Solvency 2 Delegated Regulation. Highlights include: EIOPA recommends further simplifications and improvements to the calculation of capital requirements, including for fire risk and mass accidents […]

PRA responds to Treasury Committee’s inquiry into Solvency 2

PRA has published a report in response to the Treasury Committee’s inquiry into Solvency 2. The response is split into four parts: Part 1: Overview of the UK insurance industry and the rationale for the prudential regulation of insurers. Part 2: Solvency 2 and the UK insurance sector, including the development of Solvency 2. Part 3: […]

BoE speech on looking out for the policyholder

Sam Woods, Deputy Governor, Prudential Regulation and Chief Executive Officer of PRA delivered a speech entitled ‘Looking out for the policyholder’ at the ABI’s annual conference. The speech focused on the policyholder, competition and competitiveness and Solvency 2 reform. With regard to PRA’s secondary objective to facilitate effective competition, Mr Woods provided practical examples of steps […]

PRA updates on IDD and occasional consultation

PRA has published an update on responses to certain parts of its CP18/17 Occasional consultation. The update explains how PRA prepared to bring into force rulebook changes relating to the implementation of the Benchmark Regulation, MiFID 2 and the IDD, pending completion of relevant legislative changes.

CMA updates on investment consultants investigation

The CMA has published an update of its progress on its market investigation into investment consultants and fiduciary managers.  Since it started its reference last September, it has, among other things, visited three large investment consultants and held hearings with a range of providers and stakeholders. It has also completed a large quantitative survey of […]

BoE publishes annual report on FMI supervision

The Bank of England has published a report on its supervision of financial market infrastructures (FMI). The report measures performance against its 2017 annual report, as well as looking ahead. The report: Defines FMIs and their importance; Explains BoE’s supervisory role and BoE’s interaction with national and international regulators; Reports on BoE’s supervision over the […]

Tribunal rules on third party rights

The Tribunal has handed down its decision in One Insurance Ltd’s case against FCA. The company had complained that FCA had identified it in its notices to One Call Insurance Services and John Radford, and that the notices contained statements that were prejudicial to the company.  Because One Call had inadvertently wrongly used client moneys, […]

FCA updates on service standards

FCA’s new-look update on its service standards shows that it met most of its targets for various regulatory tasks, including authorisations, passport notifications, dealing with queries and customer satisfaction. However, it did fall slightly short on some applications, particularly consumer-credit related ones, and some of its work on passports.

Council agrees IDD delay

EU ambassadors have confirmed, on behalf of the Council, that the transposition deadline for the IDD should be delayed until 1 July, and the application date to 1 October.  The EP and Council, however, are not expected to adopt the necessary amending Directive until March, after the 23 February transposition date, so that the delay […]

Insurance Europe publishes Brexit position papers

Insurance Europe has published two position papers relating to Brexit. The first paper discusses the need for a transitional arrangement, stating that such an arrangement is crucial for business continuity until legal clarity on the future UK-EU relationship is reached. Any transitional arrangement should ensure the UK remains covered by EU law and its supervisory framework […]

Commission updates Brexit pages

The European Commission has updated its website to provide information on how Brexit will affect banking and finance rules. Separate pages address: markets in financial instruments banking and payment services post-trade issues asset management credit rating agencies insurance and reinsurance and statutory audit Each page looks at the impact of withdrawal on authorisations, contracts and […]

PRA publishes policy statement on strengthening individual accountability in insurance

PRA has published a policy statement on strengthening individual accountability in insurance: optimisations to the SIMR. The policy statement follows on from an ealier consultation (CP8/17) and includes: feedback on the proposed optimisations to the SIMR and PRA’s final policy; feedback on PRA’s proposals for diversity at boards of insurers and PRA’s final policy; the […]

The UK’s developing cyber insurance market

We have written an article that assesses the UK’s developing cyber insurance market in the context of the changing regulatory landscape and looks at the possible benefits and risks associated with the proposal to share data breach information between insurers and the ICO.

PRA consults on changes relating to IDD commencement date

The PRA has published a consultation paper on amending the effective date of its rules implementing the IDD, in response to proposals from the European Commission to push IDD implementation back from 23 February 2018 to 1 October 2018. Proposals to amend the effective date to align with the Commission proposal do not represent a […]

Treasury delays transposition of IDD until the application date is confirmed

The European Parliament and European Council are considering the proposal to delay the application date of IDD until 1 October 2018. The Treasury has updated its webpage to explain that it will delay making the Insurance Distribution (Regulated Activities and Miscellaneous Amendments) Order 2018 until the proposal to delay the application date is confirmed. This […]

EIOPA consults on adaptation of requirements for insurance intermediaries’ PII and financial capacity

The Insurance Distribution Directive sets out in Article 10 base amounts of PII and minimum financial cover required by insurance and reinsurance intermediaries. It also requires EIOPA to review the prescribed levels of cover by 31 December 2017 and every five years thereafter, in order to take account of changes in the European index of […]

FCA review of Board Effectiveness

The FCA has published a report of the independent review into the effectiveness of its Board. The review was undertaken by Independent Audit Limited. The review involved interviews with Board members, a review of documentation and observance of Board and committee meetings. The report also sets out the following broad themes: aligning of activities into […]

Ombudsman News looks at travel insurance

The latest edition of Ombudsman News features problems and complaints relating to travel insurance. It notes that most disputes are around what is covered and what is not, and FOS says it is encouraged that it is upholding fewer complaints than previously – which it says indicates insurers are increasingly treating their customers reasonably. The […]

EIOPA revises work programme for 2018

The European Insurance and Occupational Pensions Authority (EIOPA) has published a revised version of its 2018 work programme, which was first published in September 2017. The revised version incorporates resources information for the years 2019 an 2020 relating to the European Commission’s legislative proposals relating to the review of the European Supervisory Authorities and the […]

FCA publishes decision notices on client money

FCA has published decision notices in respect of One Call Insurance Services Limited and its majority shareholder John Radford.  FCA plans to fine the firm £684,000 and restrict it from charging renewal fees to customers for 121 days (which would cost it around £4.6 million). FCA took action for perceived breaches of client money requirements […]

FCA publishes views on PRIIPs performance scenario concerns

FCA has published a statement following concerns raised about the performance scenarios in the PRIIPs KID. Some firms have noted that occasionally this information may appear to optimistic and risk misleading consumers. FCA says that where a manufacturer is worried the scenarios in their KID are too optimistic, it may provide explanatory materials to put […]

EIOPA translates official IBIPs Guidelines

The European Insurance and Occupational Pensions Authority (EIOPA) has published official translations of guidelines under the IDD relating to insurance-based investment products (IBIPs) which incorporate a structure that makes it difficult for the customer to understand the risks involved. In so doing, the guidelines seek to minimise risks of consumer detriment arising from mis-sold IBIPs. […]

FCA consults on widening FOS access for small businesses

FCA has opened a consultation on plans to provide more small businesses with access to FOS. The changes proposed would allow FOS complaints redress to approximately 16,000 SMEs, charities and trusts, by changing the eligibility criteria to access FOS. Under the proposals, eligible businesses would be those that satisfy the following criteria: Under 50 employees; […]

FCA publishes third policy statement on IDD implementation

FCA has published its third policy statement on IDD implementation, responding to feedback received on various consultations and providing near-final rules. In relation to life insurance distribution business, it covers requirements relating to: Inducements; Suitability and appropriateness; and Information and product disclosure. In relation to all insurance distribution business, it covers requirements relating to: Conflicts […]

Responses to the Treasury Committee’s report on Solvency II

The House of Commons Treasury Committee has published HM Treasury’s response and the PRA’s interim response to its report on the Solvency II Directive and its impact on the UK insurance industry. HM Treasury responded to the recommendations set out in the report relating to the PRA’s competitive objective and Brexit. In its interim response, the […]

Treasury publishes response to IDD consultation

In February 2017, the Treasury opened its consultation on the UK transposition of the IDD. The Treasury has now published the results of that consultation, and also the draft statutory instrument. The consultation response document indicates that the draft statutory instrument will be laid before Parliament ‘in due course’. It also notes that the proposal […]

EP updates on MLD5 and IDD votes

The EP’s Legislative Observatory has been updated to indicate: a date of 16 April for a hearing on MLD5; and a date of 28 February for a hearing on the IDD extension.

Up next from FCA

FCA’s latest Policy Development Update promises, among other things: policy statement on regulatory fees and levies by the end of March; the delayed policy statement on further implementation of the FAMR; consultation on the Money Market Funds Regulation in January; the final policy statement and near final IDD rules, also in January; and consultation in […]

PRA proposes changes to insurers’ reporting requirements

As part of its review into the implementation of Solvency 2, PRA has published a consultation paper on changes to insurance reporting requirements. The changes are designed to reduce the burden for Solvency 2 firms and mutuals while maintaining PRA’s ability to meet its statutory objectives and to supervise firms. The consultation paper is relevant to […]

FCA updates Enforcement Guide as PRIIPs Regulation comes into force

The FCA has published a legislative instrument that amends its Enforcement Guide to reflect the implementation of the Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs Regulation). The changes to the Enforcement Guide outline the FCA’s approach to enforcement of the PRIIPs Regulation, and came into force on 4 January 2018.

EP creates IDD delay file

The EP’s legislative observatory has opened a file for the debate on delay of the implementation date for the IDD, but as at 9 January no date had been set for debate.

Charles Randell becomes new FCA and PSR chair

Charles Randell CBE has been appointed the new chair of FCA and the PSR with effect from 1 April.

FCA consultation paper on aligning FSCS levy time period

The FCA has published a consultation paper on aligning the Financial Services Compensation Scheme (FSCS) levy time period (CP18/1). The FCA recently made changes to the FSCS funding arrangements as part of a broader review of FSCS funding, including to align the FSCS compensation levy year with the financial year. The FCA has since become […]

Treasury, FCA and EIOPA issue statements regarding continuity of activities and services after Brexit

Along with the PRA’s publication of consultation papers on its intended approach to supervision of third country firms, the Treasury, FCA and ESMA have recently issued statements providing an update on provision to enable firms across Europe to continue to do business after Brexit. The Treasury has announced that if necessary (ie depending on the […]

Digital comparison tools: government responds to CMA market study

Earlier this year, the Competition and Markets Authority (CMA) published the results of a market study into the use of digital comparison tools in a number of sectors, including car insurance, home insurance and credit cards. The findings of the market study included strong concern about the use of ‘most favoured nation’ clauses, which can […]

PRA publishes consultation papers on approach to supervision of third country firms after Brexit

The PRA has issued two consultation papers on its approach to branch authorisation and supervision, addressed to international banks and to international insurers.  Both consultations close on 27 February 2018. The Bank of England has also published letters from Sam Woods, Deputy Governor for Prudential Regulation regarding PRA regulated firms’ planning assumptions, and from Sir […]

EC publishes proposal to delay IDD application date

The European Commission has today published a legislative proposal to push back the application date of IDD until 1 October 2018, at the request of the European Parliament and Member States. Member states will still be required to transpose IDD into national legislation by the current implementation date of 23 February 2018. The European Parliament […]

FCA publishes second IDD policy statement

As the implementation date for the Insurance Distribution Directive (IDD) approaches, the FCA has published the second of its three policy statements on the implementation of IDD, PS17/27.  This policy statement contains near-final amendments to the FCA’s rules to enable firms to be able to prepare based on the substance of what the final versions […]

Payment Services Regulator requires change to Direct Debit rules regarding switching Facilities Management providers

The Payment Services Regulator (PSR) has published its decision to require the operator of the Bacs payment system, of which the Direct Debit scheme is a part, to change its rules to help clients switch Facilities Management (FM) service providers. Direct Debit FM service providers enable organisations which aren’t specifically approved or sponsored as Bacs […]

Law Commission to address electronic signatures and smart contracts in 13th Programme of Law Reform

The Law Commission has announced the programme of reforms it will be working on over the next 3 years.  The projects include: Electronic signatures: there is an absence of explicit case law or legislation confirming that documents executed with an electronic signature satisfy statutory requirements for documents to be in writing and/or signed and/or under […]

ESMA clarifies application of MAR to trading in closed periods in updated MAR Questions and Answers

The European Securities and Markets Authority has published 2 new questions relating to the prohibition on dealings by persons discharging managerial responsibilities during a closed period in its updated MAR Questions and Answers.  Please read our briefing  for more.

EIOPA publishes editable IPID template

EIOPA and the European Commission have developed an editable version of the IPID template. Under the IDD, the IPID is required to be provided for non-life insurance products to enable the customer to make a more informed decision. FCA has proposed  for the IPID requirement to only apply to retail customers rather than commercial customers. The […]

PRA consults on internal models under Solvency 2

As part of its review into Solvency 2, PRA has published a consultation paper which proposes updated expectations of firms in respect of: the model change process set out in Supervisory Statement (SS) 12/16 ‘Solvency II: Changes to internal models used by UK insurance firms’; and the internal model change policies set out in SS17/16 […]

EIOPA publishes Opinion on monetary incentives and remuneration between asset managers and insurers

EIOPA has published an Opinion, addressed to national competent authorities (NCAs), which focuses on consumer protection issues related to monetary incentives and remuneration between providers of asset management services and insurance undertakings. While not an issue in all member states, EIOPA has found that unmitigated conflicts of interest and the management of unit-linked policies by insurers […]

Complaints Commissioner recommends Register review

The Complaints Commissioner has rejected a complaint against FCA from complainants who suffered loss when a firm that had passported into the UK sold products that were outside its permission. The firm was a Cypriot insurance mediation firm, and the Financial Services Register showed its passport was under the IMD. However, the firm sold investments […]

FCA sets out future approach to authorisation and competition

FCA has outlined its approach to authorisation and to competition. It notes it is one of the few financial regulators in the world with an objective that includes promoting competition. It wants to understand, in relation to authorisations: whether applicants clearly understand how to meet the Threshold Conditions – and, if not, how FCA could […]

IAIS consults on an activities-based approach to systemic risk

The International Association of Insurance Supervisors (IAIS) has published an interim public consultation paper on an activities-based approach to systemic risk in the insurance sector. While the consultation paper does not contain conclusive proposals, IAIS provides stakeholders with an opportunity to comment on the development of the approach. A public background call via telephone conference […]

PRA publishes feedback on general insurance stress test 2017

PRA has sent a letter to firms that were involved in the 2017 general insurance stress test and explained that its main findings were: the UK general insurance sector as a whole and individual firms are resilient to those scenarios within the regulatory threshold of Solvency 2; and with regard to reinsurance interconnectedness, PRA found no evidence […]

FCA feeds back on FAMR

FCA has published a policy statement on its consultation on FAMR and insistent clients.  Respondents were generally supportive of FCA’s proposed PERG guidance and also asked for more guidance in some areas. FCA will publish the new guidance in early 2018 and directs firms wanting to make use of the amendment to the RAO definition […]

Lloyd’s reacts to Brexit developments

Reacting to the news that the UK and EU are planning to move to the next phase of Brexit talks, Lloyds has released a press release stating that it is pleased that the Brexit talks can now enter the second phase focusing on trade and that an agreement has been reached with regards to the […]

PRA publishes final Policy Statement and Supervisory Statement regarding insurance special purpose vehicles

Following the publication of the Risk Transfer Regulations 2017 earlier this week, the PRA has now published the updated versions of Policy Statement (PS 26/17) and Supervisory Statement (SS 8/17) on the authorisation and supervision of insurance special purpose vehicles.  These were previously published at the beginning of November.

Risk Transformation Regulations 2017 published

The government has published the Risk Transformation Regulations 2017 (Regulations), which come into force on 8 December 2017, following publication of the draft text by HM Treasury in July.   The Regulations enable the creation of a new form of body corporate: a “protected cell company,” which can act as a special purpose vehicle in Insurance […]

LMA publishes London Market Core Uses Information Notice in light of GDPR

The Lloyd’s Market Association (LMA), along with the International Underwriting Association of London, the London & International Insurance Brokers’ Association and the British Insurance Brokers’ Association, has published a London Insurance Market Core Uses Information Notice, which takes into account GDPR requirements. The Notice has been designed to assist a market participant and to help data […]

FCA fines broker for misleading customers

FCA has fined Bluefin Insurance Services Limited £4,023,800. It found the firm had inadequate systems and controls, as it held itself out to be truly independent but did not properly manage the conflicts that arose by virtue of its status as wholly owned subsidiary of AXA UK plc. As a result it used a policy […]

Treasury makes PRIIPs Regulations

Treasury has made the PRIIPs Regulations 2017, which will come into force on 1 January 2018.  The Regulations: designate FCA as the competent authority for the PRIIPs Regulation gives FCA powers where a person has infringed the PRIIPs requirements and sets out the extent of those powers and the procedure for using them provide for […]

IAIS consults on draft Issues Paper on Index Based Insurances

The International Association of Insurance Supervisors has opened a consultation on a draft paper setting out issues on Index-based Insurances. Index Based Insurances involve contracts where a claim is defined with reference to a pre-determined index.  These are seen as a possible way forward for claims relating to weather related or natural catastrophe risk event […]

FCA publishes quarterly consultation

FCA’s latest quarterly consultation proposes minor changes to: DEPP due to a change in FCA’s governance structure LR, in the meaning of Premium Listing Principle 6 and, to DTR, on where diversity reporting may be located under corporate governance reporting requirements DISP relating to access to FOS for PEPs, and referrals to TPO the Glossary definition […]

Up next from FCA

FCA’s latest Policy Development Update promises the following publications before the end of 2017: Policy Statement on formalisation of the debt concession for smaller credit unions Policy Statement on market infrastructure providers’ fee rates Policy Statement on the second consultation on FAMR implementation Policy Statement on the second IDD implementation consultation (with a PS on […]

EIOPA speaks on insurance and pensions

The Chairman of the European Insurance and Occupational Pensions Authority (EIOPA), Gabriel Bernardino, delivered a speech at EIOPA’s 7th annual conference on Insurance and Pensions Reloaded: A Game Changer. The speech covered the following four themes that cross over EIOPA’s main strategic priorities: Maintaining sound regulation in an evolving landscape – this included a discussion on […]

LMG proposal addresses issues of access, control and continuity of service in post-Brexit insurance sector

In light of Brexit-related concerns over continuity of service in the insurance sector, the London Market Group (LMG) has issued a proposal to the UK government detailing a mechanism whereby both the UK and EU are permitted mutual market access and mutual recognition of respective prudential regimes following Brexit. The proposal centres on a free trade agreement […]

FSB will not be updating list of global systemically important insurers for 2017

The Financial Stability Board (FSB), in consultation with the International Association of Insurance Supervisors and national authorities has published a statement which explains it has decided not to publish a new list of global systemically important insurers (G-SIIs) for 2017. The FSB comments that the work of IAS in the insurance sector to develop an activities-based approach may […]

ESAs update PRIIPs FAQs

The ESAs have updated the FAQs on the PRIIPs KID to include a number of new questions, including guidance on: confirming that the categorisation of a retail investor should follow the MiFID 2 definition and not take account of any national categories of “semi-professional” investor or similar; how to categorise credit-linked notes in terms of their […]

ABI publishes guide to help firms identify and support vulnerable customers in the long term savings market

ABI has published a guide to help firms operating in the long term savings market better understand, identify and support customers who may be vulnerable, to ensure all customers are supported through the whole customer journey. The guide sets out principles, good practice and case studies. ABI recommends that firms: implement a vulnerability policy or […]