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...
Category - Insurance
Emma RadmoreCommission 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...
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...
FIN. TeamThe 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...
Emma RadmoreEIOPA 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...
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...
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...
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...
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...
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...
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...
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...
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...
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;...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
Suzanne GadoEIOPA 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...
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...
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...
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...
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...
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...
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...
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’...
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...
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...
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...
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...
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...
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...
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...
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...
OECD updates guidelines on insurer governance
The Organisation for Economic Co-operation and Development (OECD) has published revised guidelines on insurer governance. The guidelines are non-binding and serve as a reference point for insurers, governmental...
FCA consults on fees
FCA has published its annual consultation paper on regulatory fees and levies. Key proposals include: the proposed tariff data FCA will use to calculate insurers’ FCA periodic fees and the FOS levies, building on...
International Association of Insurance Supervisors publishes updated Insurance Core Principles document
The International Association of Insurance Supervisors has published the latest update to its Insurance Core Principles document, which provides a globally accepted framework for supervision of the insurance sector...
Effective financial management and planning by insurance firms and groups: PRA consultation
The PRA has published a consultation paper which seeks the views on a draft supervisory statement on effective financial management and planning by insurance firms and groups. The draft supervisory statement is of...
Financial Exclusion: UK government publishes response to Lords Select Committee final report
Following the appointment in 2016 by the House of Lords of a Select Committee to investigate financial exclusion and access to mainstream financial services, the Committee published its final report, ‘Tackling...
CMA investigation in the investment consultancy services market
Following the referral of the investment consultancy services market by the FCA to the CMA earlier this year, the CMA is now entering the phase of further information gathering and has updated its investigations page...
Treasury Committee inquiry into household finances
On 8 November, the Treasury Committee announced the launch of a new inquiry that will examine problematic indebtedness, inter-generational issues, lifetime financial planning and the effectiveness of the market in...
Insurance broker loses authorisation over non-compliance with FOS award
The Upper Tribunal (Tax and Chancery Chamber) has upheld FCA’s decision to cancel the permission of Larksway Investments (an insurance broker), following non-compliance with a FOS award. FOS had upheld a complaint...
Wholesale insurance broker market: FCA launches Market Study
The FCA has today published terms of reference for a market study into the Wholesale insurance broker market. It is proposed that the market study will focus on how effectively competition in the market is working, in...
FCA publishes near-final rules for new ILS regulatory framework
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...
Up next from FCA
FCA’s latest Policy Development Update promises, before the end of the year: policy proposals for regulatory fees and levies policy statement on the second consultation on FAMR implementation policy statement on...
FCA reminds principals of AR risks
FCA has issued a further warning to firms that act as principal to appointed representatives or IARs. The warning follows an alert it published last year because of concerns over introducers having an inappropriate...
EIOPA delivers first set of advice to the European Commission on Solvency 2 Delegated Regulation
The European Commission requested EIOPA to provide technical advice as part of its review of the Solvency Capital Requirement. Following a public consultation, EIOPA has provided advice on the following areas:...
PRA publishes framework for authorisation and supervision of insurance special purpose vehicles
Following a period of consultation, PRA has published a policy statement and supervisory statement that are relevant to all parties who wish to apply to PRA for, or have obtained authorisation as, an insurance special...
FCA consults on FSCS funding
Following its December 2016 consultation for views on how FSCS funding could be reformed, FCA has published a further consultation paper seeking to ensure FSCS continues to provide the right protections, works...
Treasury Committee report on Solvency 2
Following receipt of evidence from a range of stakeholders, the Treasury Committee has published its report on Solvency 2 and its impact on the UK insurance industry. The report covers a range of areas including the...
European Parliament calls for delay of IDD application until 1 October 2018
The European Parliament has published decisions, which raise no objections to the IDD delegated acts on: product oversight and governance requirements for insurance undertakings and insurance distributors; and...
European Commission report on consumers’ decision making in insurance services
The European Commission has published a final report of a study on consumers’ decision-making in insurance services: A behavioural economics perspective. The study sought to explore and understand consumers’...
SRA consults on the implementation of IDD
The Solicitors Regulation Authority (SRA) has published a consultation paper on changes to its regulatory arrangements to comply with the Insurance Distribution Directive (IDD). SRA is a designated professional body...
PRA publishes the first in a series of consultation papers on reform to the implementation of Solvency 2
Following the introduction of Solvency 2 in January 2016, PRA has launched the first of a series of consultation papers on reform to the implementation of Solvency 2. The series begins with a paper on the Matching...
IAIS update on the status of ICPs and ComFrame development
The International Association of Insurance Supervisors (IAIS) has published tables showing the status of: the 26 insurance core principles (ICPs), including any ongoing or planned revisions; and the development of the...
PRA issues policy statement and supervisory statement on Solvency 2: Data collection of market risk sensitivities
PRA has published a policy statement and supervisory statement relevant to PRA-regulated insurance or reinsurance firms that are most exposed to market risks. These are primarily Category 1 and 2 firms in the life...
FOS updates on PPI and other complaints
The latest edition of Ombudsman News highlights: FCA’s PPI complaints deadline awareness campaign, and the common questions FOS gets from people looking to complain about PPI. FOS has seen a significant increase...
FCA report – lessons learned from its regulatory sandbox
On 20 October 2017, the FCA published a report on lessons learned from its regulatory sandbox. As a reminder, the regulatory sandbox allows firms to test innovative products, services and business models in a live...
Insurance firms “falling short of renewal expectations”
In its latest multi-firm review, FCA has reviewed the manner in which general insurance firms have implemented transparency rules in insurance renewals. The rules apply when a firm sends a general insurance renewal...
FCA’s first Financial Lives Survey: 50% of UK adults potentially vulnerable
After collecting responses from over 13,000 UK consumers, FCA has revealed the results of its largest tracking survey of consumer behaviour and use of retail financial products and services. Aiming to tell the financial...
Insurance Europe supports IDD delay
ECON’s call to the Commission to delay the application of the Insurance Distribution Directive (IDD) has been welcomed by Michaela Koller, director general of Insurance Europe. The EU Parliament’s ECON...
HM Treasury updates draft ILS regulations
Further to the July 2017 versions, HM Treasury has published updated October 2017 versions of The Risk Transformation Regulations 2017 and The Risk Transformation (Tax) Regulations 2017, which will provide a new...
EIOPA publishes guidelines for “execution-only” sales of IBIPs under IDD
Further to a public consultation, EIOPA has published a final report on its guidelines for insurance based investment products (IBIPs) under IDD that incorporate a structure which makes it difficult to understand the...
Commission asks ESAs for retail product evaluation
The Commission has published its formal request to the ESAs to report to it on the cost and past performance of the main categories of retail investment, insurance and pension products. It notes the reporting should be...
Chancellor’s repsonse to Treasury Committee’s letter on the effect of Brexit on insurance contracts
The Government has published a response to the Treasury Committee letter on Brexit and insurance contracts. The letter acknowledges the risk that the UK’s withdrawal could create legal uncertainties as to the...
FCA speaks on the ageing population
Linda Woodall has spoken at an event to launch FCA’s Occasional Paper on the ageing population. FCA has for some years been aware that the financial services needs of older consumers are generally not being met...
ABI comments on the impact of the GDPR on innovation in insurance
On 12 October 2017, the Association of British Insurers (ABI) published a blog on the impact of the GDPR on innovation in insurance. The ABI discusses a recent study on “Harnessing Innovation in European Insurance”...
EIOPA speaks on future disruption to the insurance industry
Dr. Manuela Zweimüller, Head of Policy Department at EIOPA, has delivered a speech on what will the future hold? The European insurance industry in times of major disruption. The speech highlights challenges in respect...
Bond Dickinson financial services team ranked in Legal 500
The Bond Dickinson financial services team is delighted to have achieved a Legal 500 ranking. The new directory described the team as providing ‘responsive, practical, commercial and cost-effective’ advice to a wide...
FSB’s workplan for 2017/2018
On 6 October 2017, the Financial Stability Board (FSB) published its workplan, setting out the following areas of work for the remainder of 2017 and 2018: evaluating the effects of reform – the plenary agreed that...
Insurance Europe publishes GDPR Data breach notification template
Insurance Europe has published a webpage on cyber insurance and a template for breach notifications under GDPR.
ABI speech on the future of the insurance industry
Matt Cullen of the ABI has delivered a speech on the future of the insurance industry. The speech starts by outlining the current climate of political, economic, environmental, social and environmental change as a...
Up next from FCA
FCA’s latest Policy Developments Update lists several key publications due before the end of the year: policy proposals for next year’s fees and levies policy statement on FSCS funding policy statement on...
FOS feeds back on PPI time limit changes
FOS has published feedback to its consultation on changes to the time limits for PPI complaints. It merely confirms the amendment to the Voluntary Jurisdiction in line with FCA’s changes to the Compulsory...
EIOPA work programme for 2018
EIOPA has published its Single Programming Document for 2018, highlighting and specifying the activities and tasks for the coming year, within the framework of a multi-annual work programme 2017-2019. EIOPA comments...
European Commission adopts IDD delegated regulations
The European Commission has adopted the following two delegated regulations in relation to IDD: conduct of business rules for the distribution of insurance-based investment products; and product oversight and governance...
EU-US agreement on insurance and reinsurance
The European Commission has published a statement and a factsheet detailing the agreement reached between the EU and the US on prudential insurance and reinsurance measures. The agreement addresses three areas of...
FCA publishes IDD papers
FCA has published its policy statement on its first consultation on IDD implementation, including near final rules, and has also published its third consultation with further proposals. The IDD must be implemented by 23...
FCA and HK Insurance Authority sign MoU
FCA has entered into a co-operation agreement with the Hong Kong Insurance Authority to enable the two regulators to collaborate better to support Fintech innovation. FCA already has in place similar agreements with the...
FCA looks at ageing population
FCA has published an Occasional Paper looking at the ageing population and financial services. FCA’s research has found there is a risk that the financial services needs of older people are not being fully met...
Treasury Committee letter to Chancellor on effect of Brexit on insurance contracts
The Treasury Committee has published a letter written to the Chancellor of the Exchequer highlighting the problem with insurance contracts sold under passporting arrangements with a duration beyond 29 March 2019. The...
Insurance Europe calls for ‘grandfathering’ of existing insurance contracts post-Brexit
Insurance Europe has published a position paper calling for the ability of (re)insurers’ to service existing contracts issued on the basis of passporting before Brexit to continue to run post-Brexit. IE recommends...
Lloyd’s sets out CFA expectations
Lloyd’s has published a market bulletin on the Criminal Finances Act, focussing on its expectations of managing and members’ agents – in particular the need for senior management appreciation of the...
Article on cyber insurance underwriting risk
We have written an article published in Cyber Security Practitioner on PRA’s July 2017 Supervisory Statement on cyber insurance underwriting risk. The full article is available to subscribers.
FOS updates complaints data
FOS has published individual complaints data for H1 2017, relating to businesses in relation to which FOS both received and settled at least 30 cases during the period. FOS says these firms comprise around 95% of the...
FCA consults on miscellaneous changes
FCA’s latest Quarterly Consultation Paper covers: amendments to FEES in respect of fees when firms apply for a VOP for provision of payment initiation and account services. FCA needs to charge fees as it has...
Up next from FCA
FCA’s latest Policy Development Update promises several publications over the coming quarter: during September, papers will include finalised guidance on FAMR implementation and a consultation on insurers’...
FCA launches PPI campaign with help from ‘Arnold Schwarzenegger’
The FCA has today launched its PPI campaign with a television advert in order to raise awareness of the two year deadline to make a complaint about payment protection insurance. The deadline, which has been introduced...
MoJ publishes Plevin guidance for CMCs
The Ministry of Justice has published guidance for claims management companies when they handle cases relating to Plevin. The guidance mainly explains what FCA’s expectations are and stresses that CMCs must not...
ESAs publish further Q&As on the Key Information Document for PRIIPs
Further guidance on the Key Information Document (KID) under PRIIPs was published by ESAs today in the form of questions and answers (Q&A). The Q&A includes additional questions and answers to those published on...
FCA Regulation round – up for August
This month’s edition of Regulation round-up discusses: the consultation to extend SM&CR to all financial services firms; the Threshold Conditions Team taking enforcement action and cancelling the...