ABI calls for partnership with FCA
by Richard Kilner
Story link: ABI calls for partnership with FCA
The Association of British Insurers (ABI) has indicated that the insurance industry wishes to work in partnership with the new Financial Conduct Authority (FCA). ABI Director General Otto Thoresen, speaking at the ABI’s ‘The Way ahead for conduct regulation’ conference, will warn against the possibility of a predator-prey relationship between the regulator and industry. Thoresen [...]
Legal Ombudsman to handle claims management complaints
by Gill Montia
Story link: Legal Ombudsman to handle claims management complaints
The Government has announced that from 2013 the Legal Ombudsman will handle complaints about claims management companies and will have the legal power to ensure consumers can get compensation, where appropriate. According to the Ministry of Justice (MoJ), the change will also enable the Claims Management Regulation Unit to refocus its resources on improving standards [...]
Regulatory shake-up for credit rating agencies
by Gill Montia
Story link: Regulatory shake-up for credit rating agencies
The European Commission wants to see investors less dependent on credit rating agencies when making their decisions and has plans to toughen up regulation in the sector. According to the Commission, recent events have highlighted the role the agencies play in today’s financial markets with the euro debt crisis in particular exposing certain weaknesses in [...]
ABI warns against regulatory overlap
by Richard Kilner
Story link: ABI warns against regulatory overlap
The Association of British Insurers (ABI) has called for greater co-ordination between new financial regulatory authorities, with an emphasis upon enhancing transparency and accountability. Otto Thoresen, the ABI’s Director General, warned against the duplication of activity by the new Prudential Regulation Authority and Financial Conduct Authority. Thoresen added that unless the two authorities share information [...]
BIBA campaigns for fresh approach to broker regulation
by Gill Montia
Story link: BIBA campaigns for fresh approach to broker regulation
The British Insurance Brokers’ Association (BIBA) is calling for future broker regulation to focus on the “limited” risks that brokers actually pose in the financial sector and to the wider economy. According to BIBA research, regulation costs are currently three-times higher than the next most expensive European state. The point was illustrated by the Association [...]
PRA to adopt “less intensive” supervisory approach for insurers
by Gill Montia
Story link: PRA to adopt “less intensive” supervisory approach for insurers
In its consultation document on the new regulatory regime published yesterday, the Government has confirmed that the general principle underpinning its model of dual regulation will apply to the insurance industry. That is to say, the conduct of business and consumer protection issues are the preserve of the Financial Conduct Authority (FCA), while the Prudential [...]
Defaqto unravels income protection sales
by Gill Montia
Story link: Defaqto unravels income protection sales
Defaqto has concluded that selling income protection policies as part of a menu plan is an effective way for Independent Financial Advisers to ensure that their clients have adequate cover. Menu-plan products allow an IFA to offer clients the full range of covers in the first instance, with the option to scale back benefits one [...]
BIBA members highlight “cost” in regulatory reform
by Gill Montia
Story link: BIBA members highlight “cost” in regulatory reform
The British Insurance Brokers’ Association (BIBA) has submitted a formal response to HM Treasury’s consultation paper on a new approach to regulation. Based on the comments of a cross-section of BIBA members, the two-part response answered the questions in the consultation paper and provided both quantitative and qualitative comments on the current regulatory regime. Putting [...]
Government urged not to over-regulate insurance
by Richard Kilner
Story link: Government urged not to over-regulate insurance
As the country braces itself for the tax hikes and spending cuts of the Coalition’s austerity drive and the economy emerges from recession, the competitiveness of the City of London has become a matter of discussion. Tim Leggett, a partner in the financial services practice at Ernst & Young, has called for Solvency II to [...]
Lord Levene calls for growth, not regulation
by Richard Kilner
Story link: Lord Levene calls for growth, not regulation
Speaking at Lloyd’s City Dinner, Lord Levene called for common sense to prevail and argued against imposing overly harsh regulation on the insurance sector. Lord Levene complained of a failure of common sense for making the insurance sector fight against strict regulation, despite being a healthy industry that was not hit particularly hard by, nor [...]
Solvency II to affect insurers’ capital requirements
by Richard Kilner
Story link: Solvency II to affect insurers’ capital requirements
New European Solvency II rules will mean European insurers losing an average of two-thirds of their current surplus capital, according to a new study by Morgan Stanley and Oliver Wyman. Jeremy Irving, partner at international law firm Eversheds, has stated that the introduction of the new regulations will necessitate a cultural and operational shift for [...]
FSA to be dismantled
by Gill Montia
Story link: FSA to be dismantled
The Financial Services Authority (FSA) is to be broken up, with the key role of regulating the UK financial sector passing to the Bank of England. Chancellor of the Exchequer, George Osborne, outlined his alternative to the current tripartite system of regulation in a Mansion House speech last night. The changes involve the FSA’s operations [...]
Insurance industry unready for Solvency II
by Richard Kilner
Story link: Insurance industry unready for Solvency II
Deloitte has commissioned a report by the Economist Intelligence Unit to assess the UK insurance industry’s preparedness for the incoming Solvency II regulations. Worryingly, 36% of UK insurers indicated that they did not believe the industry as a whole would be ready for the introduction of the new rules by the 2012 deadline. More than [...]
CII calls for independent professional standards board
by Richard Kilner
Story link: CII calls for independent professional standards board
The Chartered Insurance Institute (CII) has commissioned research which has revealed that there is strong support for an independent professional standards board, rather than internal FSA governance. The research came in two parts, the first half conducted with members and the second half with a wider spectrum of IFAs, with both segments showing a backing [...]
Mazars call for proportionality in insurance reforms
by Richard Kilner
Story link: Mazars call for proportionality in insurance reforms
International accountancy firm Mazars have called for a measured response to the proposed reforms of the insurance industry, arguing that the degree of systemic risk and size of the institution must be taken into account to allow insurers to manage the proposed reforms. There is a wave of reform heading in the direction of the [...]
PBR closes insurance tax loophole
by Richard Kilner
Story link: PBR closes insurance tax loophole
In the Pre-Budget Report (PBR) Chancellor Alistair Darling announced changes to tax legislation in order to prevent tax avoidance from insurance premium tax (IPT) on insurance administration contracts. The changes come after HMRC suffered defeat in the High Court of Appeal in the Homeserve case. The amendments focus upon firms providing ancillary insurance cover in [...]
ABI calls for improved competitiveness in the UK
by Richard Kilner
Story link: ABI calls for improved competitiveness in the UK
The Association of British Insurers (ABI) has called upon the Government to take action in order to bolster the competitiveness of the United Kingdom. Four out of five insurers believe that unless UK competitiveness is enhanced the country will see a decline in insurance firms based here, and almost two in three senior managers are [...]
Financial Crisis Advisory Group publishes accountancy recommendations
by Gill Montia
Story link: Financial Crisis Advisory Group publishes accountancy recommendations
The Financial Crisis Advisory Group (FCAG) has published its recommendations regarding accounting standard-setting and other changes to the international regulatory environment that should follow the global financial crisis. The FCAG was formed at the beginning of the year at the request of the International Accounting Standards Board and the US Financial Accounting Standards Board, to [...]
ABI gives support to Opposition reform plans
by Richard Kilner
Story link: ABI gives support to Opposition reform plans
The Association of British Insurers (ABI) has responded to the statement by Shadow Chancellor George Osborne regarding Conservative proposals for reforming the financial regulatory system of the United Kingdom. Director General Stephen Haddrill has said he welcomes the clarity and detail provided by the Opposition in relation to their proposals. However, Haddrill did say that [...]
Legal & General Investment champions shareholder power
by Gill Montia
Story link: Legal & General Investment champions shareholder power
Legal & General Investment Management (LGIM) is adding to the debate over regulation by defending shareholders. The Treasury Select Committee’s examination of the credit crisis earlier this year called institutional shareholders to account for not having done enough to challenge banks’ boards in the run-up to the credit crisis. LGIM is the biggest investor in [...]
