The FCA has today announced that it will soon be launching a campaign to inform people of the 29 August 2019 deadline for making a complaint about PPI. The campaign will contribute to the regulatory and supervisory...
Category - Insurance
FIN. TeamMinor amendment to PRIIPS RTS published in the Official Journal
Background A corrigendum to Commission Delegated Regulation (EU) 2017/653 of 8 March 2017 supplementing Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment...
Rise in complaints for PPI
This week FOS published its regular newsletter in which it discussed: a rise in consumer credit complaints; statistics on complaints received in the first quarter of 2017/2018; and an update on PPI and the FCA’s...
European Commission publishes rules for insurance product information document under IDD
The European Commission has published a regulation laying down a standardised presentation format for the insurance product information document (IPID) to comply with IDD. The IDD must be transposed into national law...
HM Treasury reports on the progress of Insurance Fraud Taskforce’s recommendations
HM Treasury has published a report on the progress made during 2016 on the original 26 recommendations put forwards by the Insurance Fraud Taskforce. The Taskforce was set up to investigate the causes of fraudulent...
Treasury Committee and PRA exchange Brexit letters
Nicky Morgan, new Chair of the Treasury Committee, and Sam Woods of PRA have exchanged letters on Brexit planning. The PRA response explained PRA’s work in assessing the scenarios that might have the biggest...
PRA consults on fees and levies for insurers and designated investment firms
PRA has published a consultation paper on model transaction fees, fees and FSCS levies for insurers and fees for designated investment firms. The consultation paper is relevant to insurers and designated investment...
eba publishes fintech discussion paper
The European Banking Authority has published a Discussion Paper on its approach to financial technology (FinTech). The EBA sets out in the Discussion Paper the results of the first EU-wide FinTech mapping exercise and...
Up next from FCA
FCA’s latest policy development update promises several papers before the end of September: consultation on market infrastructure provider fee rates consultation on insurers’ tariff data finalised guidance...
Emma RadmoreESAs advise the Commission on PRIIPs with environmental or social objectives
The European Supervisory Authorities (ESAs) have submitted their technical advice to the European Commission (the Commission) to set minimum requirements, which manufacturers of PRIIPs with environmental or social (EOS...
EIOPA creates webpage on product intervention powers under PRIIPs regulation
The webpage is available here.
Product intervention powers will come into force as of 1 January 2018.
BOE releases consultation on extension of SM&CR to insurers
Today the PRA has published proposals to extend the Senior Managers and Certification Regime (SM&CR) to insurers. These proposals seek to implement a consistent but proportionate regulatory framework to...
FCA releases details of consultations on the extension of SM&CR to all firms
The long-awaited consultations on the extension of the SM&CR have been released: CP17/25 – Individual accountability – extending the Senior Managers and Certification Regime to all FCA firms. Banks are...
FCA publishes second Consultation Paper on IDD implementation
Following on from Consultation Paper (CP) 17/7, FCA has published CP 17/23 detailing further proposals on the implementation of the IDD in the UK. The CP is relevant to firms, including insurance and reinsurance...
HM Treasury publishes final ILS Regulations
Following two consultations in 2016, HM Treasury has published the final rules for a new tax and regulatory framework for insurance linked securities (ILS) business in the UK. The Risk Transformation Regulations 2017...
EC publishes draft Delegated Regulation on insurance-based investement product requirements under IDD
EC has published for consultation a draft Delegated Regulation supplementing the IDD concerning information requirements and conduct of business rules applicable to the distribution of insurance-based investment...
ICO fines Moneysupermarket.com £80,000
ICO has fined Moneysupermarket.com Ltd £80,000 for sending 7.1 million unsolicited direct marketing emails over a period of ten days to update its customers on its Terms and Conditions. Crucially all the recipients of...
FCA Regulation Round-Up for July
The FCA published its July edition of Regulation Round-Up this week. Highlights of some of the “hot topics” covered include: interim report of the FCA’s Retirement Outcomes Review; the publication of...
PRA updates rules
PRA has published feedback on its Occasional Consultation Paper 2/17 and its consultation on regulatory reporting, together with finalised rules and policy statements. The new rules cover: minor amendments to the rules...
Lloyd’s publishes report on how it would respond to a market turning event
Following an industry “dry run” exercise in November 2016, Lloyd’s has published a report setting out six principles on how it would respond to a market turning event, which causes significant impact...
Financial Guidance and Claims Bill reaches Committee stage
The Financial Guidance and Claims Bill has reached the Committee stage in the House of Lords in the parliamentary process. The Bill started in the Lords so, after it has finished the Lords stages, it will need to go to...
Up next from FCA
FCA’s latest policy development update includes: second consultation on the IDD due in July, with a policy statement on the first consultation due in September; consultation on current account services in July and...
FMLC looks at Brexit third country issues
The Financial Markets Law Committee has published its views on the legal uncertainties related to the future classification of the UK as a third country in respect of the EU. The purpose of the paper is not to make...
FSCS annual report and accounts 2016/17: compensation costs total £375m
FSCS has published its annual report and accounts and annual report and class statements 2016/17, which set out its vision and strategy. The publications detail that FSCS paid out for over 37,000 claims 2016/17 in the...
Brexit: European Union (Withdrawal) Bill presented to Parliament
The Government presented the European Union (Withdrawal) Bill to Parliament on 13 July for its first reading. The Bill seeks to repeal the European Communities Act 1972 on the day when the UK leaves the European Union...
FCA publishes notice of undertaking by London General Insurance Company
London General Insurance Company Limited (LGI) has given an undertaking in respect of a term in respect of a Nationwide FlexPlus Account Extended Warranty Protection Policy. The policy set out a list of items that were...
EIOPA publishes opinion on supervisory convergence in light of Brexit
EIOPA has provided an Opinion addressed to national supervisory authorities on supervisory convergence in light of the UK’s withdrawal from the EU. EIOPA acknowledges that insurers may be seeking to relocate to or...
Highlights of IAIS 10th annual global seminar
Following its annual global seminar, the International Association of Insurance Supervisors (IAIS) has published a press release which contains details of the seminar and highlights: The IAIS provided a high-level...
BoE responds to risks in life and general insurance sectors
David Rule, Executive Director of Insurance Supervision at BoE delivered a speech on 6 July at the Association of British Insurers (ABI) with a focus on risks and BoE’s supervisory priorities in the life and...
PRA publishes its Annual Report and Accounts for 2017/2017
PRA’s Annual Report and Accounts for 2016/2017 outlines how it delivered this year’s business aims, including: Continuing to develop and implement the forward‑looking, judgement‑based supervisory regime;...
FCA publishes annual report
FCA’s Annual Report and accounts for 2016/17 sets out its highlights from the past year, and includes specific sectoral reports for competition, enforcement, AML and diversity. FCA regards the year’s...
Commission publishes PRIIPs KID guidelines
The Commission has published draft guidelines on the PRIIPs KID. The guidelines aim to promote consistency by smoothing out areas of potential divergences in interpretation. Questions the guidelines address (although...
Treasury publishes financial guidance responses
Treasury has published the responses it received to its consultation on creating a single financial guidance body. The new body has now been legislated for under the Financial Guidance and Claims Bill and will: be a non...
PRA response on dealing with a market turning event in the general insurance sector
PRA has published a supervisory statement (SS) and policy statement, relevant to all Solvency II firms, on dealing with a market turning event in the general insurance sector. The statements follow responses to an...
PRA publishes supervisory statement on cyber insurance underwriting risk
PRA has published a policy statement and supervisory statement on cyber insurance underwriting risk. The statements are relevant to all UK non-life insurance and reinsurance firms and groups within the scope of Solvency...
PRA issues policy statement on matching adjustment under Solvency 2
Following 12 responses received to the earlier consultation paper, PRA has issued a policy statement on matching adjustment – illiquid unrated assets and equity release mortgages. The policy statement includes the...
EIOPA calls for recovery and resolution framework for insurers
EIOPA has published an Opinion, which proposes a minimum harmonised and comprehensive recovery and resolution framework in the area of recovery and resolution for Solvency 2 (re)insurers. EIOPA’s view is that...
ESAs answer questions on the KID requirements for PRIIPs
The ESAs have published the first set of question and answers (Q&A) related to the KID requirements for PRIIPs. The purpose of the Q&A is to promote a common supervisory approach to the implementation of the KID...
EIOPA consults on first set of advice on Solvency II review
EIOPA has launched a project in a response to the call for advice by the EC and has published a consultation paper on the first set of advice. EIOPA’s focus is on the review of Commission Delegated Regulation...
Insurance Europe publishes PRIIPs information exchange templates
Insurance Europe has published the following templates in relation to the PRIIPS regulation: The European PRIIPs template, which includes the minimum data necessary for insurers to produce a KID; and The...
IAIS issues public consultations on its ICPs and product oversight in inclusive insurance
The International Association of Insurance Supervisors (IAIS) has launched public consultations on the following: draft provisions of its Insurance Core Principles (ICPs): ICP 1 (Objectives, Powers and Responsibilities...
FCA starts with-profits customer treatment review
FCA has issued an information request to many firms that carry on with-profits business. It is carrying out a multi-firm review of the sector, focussing particularly on fair treatment of with-profits customers. One of...
WFE encouraged by Commission consultation on FinTech
The World Federation of Exchanges said it was encouraged by the Commission’s consultation on FinTech as it believed that it was important to get policy right in this area to avoid the rush to regulate. These...
FCA updates on FAMR
FCA has announced the names of the 17 firms who have to date participated in its advice unit . There have been two cohorts of firms, representing deposit-takers, pension firms, IFAs and wealth managers and has included...
FCA’s follow up work general insurance on appointed representatives
Following its 2016 thematic review, FCA has undertaken follow up work and visited 20 principal firms, focusing on London market insurance intermediaries that had diversified and developed networks of appointed...
EIOPA publishes first Solvency 2 statistics
EIOPA has published the first set of quarterly statistics on quantitative Solvency II reporting from insurance undertakings and groups in the EU and EEA. The statistics contain aggregated country level information about...
ILS regulations expected to come into force in the autumn
In a letter dated 26 June 2017, HM Treasury has written to the London Market Group (LMG) regarding the Group’s response to the Government’s Insurance Linked Securities (ILS) Project. The Treasury confirmed...
FCA speech on improving access to insurance
On 20 June 2017, Christopher Woolard, Executive Director of Strategy and Competition at the FCA, delivered a speech at the FCA Insurance Access event on improving access to insurance. Following the FCA’s...
FCA call for input on access to insurance
On 20 June 2017, the Financial Conduct Authority published a Call for Input on access to insurance following the issues raised in its May 2016 Occasional Paper on access to financial services in the UK. The occasional...
FOS consults on PPI voluntary jurisdiction
In March 2017 FCA announced it was introducing a 29 August 2019 deadline for all PPI complaints to be submitted to firms or ombudsman services (subject to limited exceptions). This rule comes into effect on 29 August...
EIOPA publishes ORSA assessment
EIOPA has published an assessment of the first supervisory experiences of how European (re)insurance companies have implemented the own risk and solvency assessment (ORSA) process under Solvency II. The key findings are...
EIOPA speaks on Brexit – “empty shells or letter boxes are not acceptable”
Gabriel Bernardino, Chairman of EIOPA, delivered a speech on opportunities, challenges and regulatory developments. Mr Bernardino concluded his speech with an explanation that EIOPA’s priority on Brexit is focused...
EIOPA signs another Memorandum of Understanding with World Bank
EIOPA and the World Bank have entered into a further Memorandum of Understanding (MoU). The MoU is for a period of three years and replaces the MoU signed in 2013. The Parties intend to collaborate, with a focus on...
EIOPA publishes 2016 annual report
EIOPA has published its annual report which reviews its mandate and programme of work during 2016. Highlights of what EIOPA considers to be its top achievements in 2016 include: Developments of the KID for PRIIPs...
eiopa responds to commission’s consultation on fintech
EIOPA has responded to the Commission’s consultation on FinTech. EIPOA notes that digitalisation / InsurTech is of strategic importance for the insurance and pensions sector. It has an impact in all of the areas...
John Griffith – Jones leaving the FCA
John Griffith – Jones has confirmed that he will leave both the FCA and the PSR at the end of his term of office on 31 March 2018.
FCA updates on sandbox
FCA has updated information on its regulatory sandbox. It says the sandbox’s popularity is increasing and larger numbers of firms both applied for and were accepted for testing in cohort 2. FCA has named the 24...
FOS publishes annual review
FOS has published its annual review for 2016/17, a period which it described as ‘immensely demanding’. Similarly to previous years, FOS reported that much of its activity focused on PPI...
PRA consults on SMR/SIMR changes
PRA has published a consultation paper proposing changes to both the SMR and SIMR, but focuses predominantly on the SIMR, introducing what PRA describes as “optimisations”. The proposed changes will apply to...
Up next from FCA
FCA’s latest policy development update provides information on its recent and upcoming publications. Only one key publication is shown as scheduled for June – a policy statement on enhancing conduct of...
BoE speaks on operational resilience
Charlotte Gerken has spoken of the BoE’s approach to operational resilience. She focussed on how it is developing its approach in co-operation with firms and other regulators. BoE’s aim is to improve the...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation proposes changes to: TC to update the list of appropriate qualifications; SUP to clarify how the requirement to have a client assets report applies to loan-based crowdfunding...
Court concludes an insured with policy for buy-to-let property is a not consumer
The Court of Appeal has dismissed an appeal by an insured because he was not a consumer within the meaning of ICOBS and the Unfair Terms in Consumer Contracts Regulations 1999 (the Regulations). The insured took out a...
ESMA responds on Fintech
ESMA has responded to the Commission’s consultation on Fintech. It sees Fintech as a positive evolution so long as business models continue to aim to improve the customer experience and financial inclusion. It...
ECON publishes draft retail FS plan
The EP has published a draft report on the Action Plan for retail financial services. The report: says the EU retail financial services market is still underdeveloped and fragmented, but recognises that such a market...
ABI speaks on UK insurance industry
The ABI has spoken on the opportunities regulation can offer for the industry, which are getting wider – for example, willingness of the industry to see the competition regulator becoming involved in their markets...
ESMA sets out principles for regulating migrating UK firms
ESMA has published a set of principles that the regulators in the “EU27” should follow when assessing applications from UK institutions seeking an EU authorisation post-Brexit. Key principles include: that...
eiopa to publish guidance on sound principles for authorisation and supervision in light of brexit
EIOPA’s (European Insurance and Occupational Pensions Authority) head of policy, Manuela Zweimuller, has announced at a conference that EIOPA will publish the guidance with a view to arming national regulators...
ESMA speaks on Regtech
ESMA has spoken on how the financial services industry has adopted Regtech. Patrick Armstrong looked at the changes in how we work that have been subject to almost constant change in the past 10 years. Yet, he said...
EP adopts Fintech resolution
The EP has adopted a resolution on the influence of technology on the financial sector. The provisional version of the resolution focuses on the rapid development of applications of fintech technologies and notes that...
FCA proposes guidance on insurance Part VII transfers
FCA has issued guidance on its approach to reviewing insurance business transfers schemes under Part VII of the Financial Services and Markets Act 2000. While the PRA leads the Part VII process, the FCA also has a role...
FCA updates on PRIIPs
FCA has updated its website with examples of products it considers will, and will not, be PRIIPs, and explaining the duties of manufacturers, distributors and advisers in relation to them.
Article on the implementation of IDD
We have written an article for Compliance Monitor on the implementation of IDD, looking specifically at consultations by HM Treasury and the FCA on the proposed changes to UK law and regulation.
PRA updates policy statements on accountability regimes
Following feedback received on Consultation Paper 34/16, PRA has published its policy statement on strengthening individual accountability in banking and insurance: amendments and optimisations. The updates in the...
Up next from FCA
FCA’s latest Policy Development Newsletter promises only a policy statement on enhancing COB rules for firms providing CFDs to retail clients following before the end of June. Many other papers are due later in...
PPI: the final countdown
We have written an article on the new timescale for handling PPI complaints, the FCA’s customer communications campaign and its new rules on writing to customers whose complaints have previously been rejected and...
EIOPA publishes thematic review on monetary incentives and remuneration between insurers and providers of asset management services
EIOPA has published its thematic review on consumer protection issues in the unit-linked market emerging from the business relations between providers of asset management services and insurance undertakings. The review...
EIOPA calls for evidence following European Commission’s 2nd request for technical advice on Solvency 2 Delegated Regulation
EIOPA is seeking responses on the treatment of unlisted equity and debt without an External Credit Assessment Institution rating in the standard formula. This request is further to the European Commission’s...
PRA makes branch whistleblowing rules
PRA has made policy statements and rules requiring UK branches of non-EEA banks and insurers to tell their staff about the PRA and FCA’s whistleblowing services. Any non-EEA bank that has both a branch and a...
FCA publishes first new-form complaints data
FCA has published the first set of complaints data (covering the second half of 2016) that firms have reported since last year’s rule changes that give firms 3 days to address a complaint to a consumer’s...
“Law vs morality” – the power of FOS
We have written an article on how the FOS interpreted a complaint on a claim on a life insurance policy in relation to an individual later found to have been in the early stages of dementia when he bought the policy...
LMA updates consumer wordings guidance
The Lloyd’s Market Association has published an update to its jointly prepared guidance on consumer wordings for managing agents. The guidance has been updated in the following areas: Claims handling –...
LMA publishes EU contract continuity clause
The Lloyd’s Market Association has published a model clause as guidance for its Members. The clause is designed to enhance contract certainty on the occurrence of an event associated with membership of the...
Bond Dickinson commercial insurance timeline
We have prepared a commercial insurance timeline which highlights key legislation, regulation, cases and other developments that impact on the industry. This timeline covers developments from March 2017 onwards.
FCA publishes Mission Statement and Business Plan
FCA’s latest Mission and Business Plan contain few surprises, but indicate a lot of work in diverse areas. The Mission, which takes into account stakeholder views, seeks to explain to firms how and why FCA...
PRIIPS RTS in OJEU
The RTS on the presentation, content, review and revision of the PRIIPs KID have been published in the OJEU and will take effect from 2 May.
FCA looks at consumer behaviour and advertising
FCA has published an occasional paper that looks at the behaviour of consumers and the consequences it has on their reaction to financial promotions. The paper considers: how consumers will look for and find promotions...
FSCS confirms £363m levy for 2017/18
FSCS has announced its levy for 2017/18. The £363m is less than forecast in the FSCS’ 2017/18 Plan and Budget in January, but more than the 2016/17 levy. The 2017/18 levy includes: no change to the £100m levy on...
PRA launches general insurance stress test 2017
PRA has asked the UK’s largest general insurers to provide information about the impact of a range of stress tests on their projected Own Funds, as well as providing additional information on their sectoral...
fca issues Financial Advice Market Review progress report
FCA has published the Progress Report reporting on the progress towards implementing the FAMR recommendations. The FAMR final report set out 28 recommendations which are addressed in the progress report. The Financial...
FCA speaks on the next phase of Project Innovate
On 10 April 2017, Christopher Woolard, the FCA’s Executive Director of Strategy and Competition delivered a speech at the Innovate Finance Global Summit in London. The speech considers the work of the FCA’s...
FCA publishes discussion paper on distributed ledger technology
The FCA has published a discussion paper on distributed ledger technology (DLT). The discussion paper describes DLT and acknowledges blockchain as a type of DLT. The FCA invites a discussion on two sets of issues: What...
Riot Compensation Act 2016 comes into force
On 6 April 2017 the Riot Compensation Regulations 2017 and the remaining provisions of the Riot Compensation Act 2016 came into force, with the former required to implement the Act effectively. The new legislation...
PRA asks firms to provide Brexit contingency plans
Sam Woods, the PRA’s CEO, has published a letter seeking contingency plans from firms in light of the UK’s impending withdrawal from the EU. The letter is relevant to banks, insurers and designated investment...
EP agrees PRIIPs KID RTS
The European Parliament has published its decision not to object to the draft revised RTS on presentation, content, review and revision of the KID for PRIIPs.
Article on the Enterprise Act 2016 – late payment of insurance claims
We have written a detailed summary on the late payment of insurance claims provisions of the Enterprise Act 2016, which will come into effect on 4 May 2017. These provisions are likely to have a significant impact on...
HMT issues regulatory innovation plan
The government’s vision is for UK financial services to be the most competitive and innovative in the world, supplementing existing services with greater choice and value for consumers. The innovation plan covers how...
FOS updates on plans and caseload
FOS’ latest Ombudsman news highlights its plans for the year ahead and current statistics. Its case updates focus on complaints where mistakes or misunderstandings led to consumer loss, and where financial...
pra publishes march regulatory digest
The March Regulatory Digest has been published by the PRA. Top news covered this month: insurance supervision at the PRA – speech by Sam Woods and report by the Independent Evaluation Office (IEO) consultation on its...
FCA makes new rules
FCA made several changes to its rulebook at its Board Meeting on 30 March. Key changes include: changes to fees relating to the FOS and periodic fees for exchanges and benchmark administrators; changes to the FSCS...