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Category Archives: Regulatory and legislative updates

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Posted in Italy, Regulatory and legislative updates

Unit-linked policies: a new judgement of the Italian Supreme Court

On 5 March the Italian Supreme Court issued a new important judgment on unit-linked policies and their nature. Unlike previous decisions rendered over the past years, in which the Supreme Court merely referred to the lower courts the task of assessing the features of the disputed policies so as to verify whether they could be

Posted in Regulatory and legislative updates, Spain

Spain: Contingency measures following no-deal Brexit published –and they guarantee continuity of insurance contracts and smooth adaptation to new regime for British insurers

What is all about? Brexit month is finally here –or is it? Interests at stake on both sides of the Channel, fearing consequences of a no-deal Brexit, may end up cristalysing in a delay and extension to Article 50 of the TEU. Whatever the case, as things stand now, the UK is due to leave

Posted in Regulatory and legislative updates, UK

UK: Corporate Insurance Newsletter – February 2019

The Hogan Lovells’ Corporate Insurance Newsletter for February  has been published.  This provides a round-up of UK, EU and international regulatory developments relevant to UK based insurance market participants.  In this issue, amongst other items, we cover: Latest Brexit related consultation papers and other material from the HM Treasury, PRA and FCA The FCA’s final

Posted in Regulatory and legislative updates, UK

UK: PRA proposals to Increase the Part VII Transfer Transaction Fee

On 13 February 2019, the PRA published Policy Statement (PS) 3/19, which sets out the PRA’s final policy on updating periodic fees and transaction fees for insurers. Notably PS3/19 implements a substantial increase in Part VII FSMA regulatory transaction fees. This change will come into effect on Friday 1 March 2019. The Part VII transaction

Posted in Regulatory and legislative updates, UK

UK: A pretty clean bill of health for the London Wholesale Broker Market

FCA publishes its Final Report for Wholesale Insurance Broker Market Study The FCA has published today its final Report in respect of its Market Study of the wholesale insurance broker market. The Market Study was launched in November 2017 with a focus on evaluating the level of competition in the sector in light of how

Posted in Regulatory and legislative updates, USA

US: NAIC forms working group to explore alternative restructuring mechanisms for insurers seeking to transfer blocks of business

On 19 February 2019, the NAIC Financial Condition (E) Committee voted to form a Restructuring Mechanisms Working Group (the “Restructuring Working Group”) and a Restructuring Mechanisms Subgroup (the “Restructuring Subgroup”) to consider the issue of various insurance business transfer (“IBT”) laws that have been adopted, or are being considered, across the United States. These IBT

Posted in Regulatory and legislative updates, UK

UK: Transition without a transition period: EIOPA issues recommendations on continuity of insurance contracts following no-deal Brexit

On 19 February 2019, the European insurance regulator EIOPA released recommendations for the insurance sector, calling on national supervisory authorities (“NCAs“) in the EU27 to minimise the detriment to insurance policyholders and beneficiaries in case of a no-deal Brexit. Other states in the European Economic Area (“EEA“) can be expected to follow EIOPA’s recommendations. The

Posted in Regulatory and legislative updates, UK

UK: PRA publishes Consultation Paper 3/19 “Solvency II: Longevity risk transfers-simplification of pre-notification expectations”

On 5 February 2019, the Prudential Regulation Authority (PRA) published Consultation Paper (CP) 3/19, which proposes to update Supervisory Statement (SS) 18/16 “Solvency II: longevity risk transfers” to simplify the pre-notification requirements for longevity risk transfers and update the key risks the PRA considers arise from longevity risk transfers. Since Solvency II came into effect

Posted in Regulatory and legislative updates, UK

UK: Corporate Insurance Newsletter – January 2019

The Hogan Lovells’ Corporate Insurance Newsletter for January has been published.  This provides a round-up of UK, EU and international regulatory developments relevant to UK based insurance market participants.  In this issue, amongst other items, we cover: Latest Brexit related consultation papers and other material from the HM Treasury, PRA and FCA FCA consultation on proposals

Posted in Regulatory and legislative updates, UK

Webinar: Countdown to SMCR: What intermediaries need to know

The FCA has confirmed that the Senior Managers & Certification Regime (SMCR) will cover all regulated financial firms (including any insurance intermediaries in insurance groups) from 9 December 2019. The new regime will impact nearly all staff within financial services organisations, and firms need to consider how they should be preparing for the change ahead.

Posted in Regulatory and legislative updates, UK

Brexit planning: The UK enters into agreements with the U.S. and Switzerland to replicate existing agreements

Introduction On 18 December 2018 the UK and the U.S. signed an agreement on the prudential supervision of insurance and reinsurance companies. Shortly thereafter, on 25 January 2019, HM Treasury announced that it had signed an agreement with Switzerland on direct insurance. These agreements form part of the UK Government’s Brexit preparations: after the UK

Posted in Regulatory and legislative updates, UK

UK: HMRC introduces Profits Diversion Compliance Facility

Our tax team recently published an article about the introduction of a new Profits Division Compliance Facility by HM Revenue & Customs.  This is an opportunity for multinationals, including insurers, active in the UK to initiate a discussion with HMRC on how they allocate their profits across jurisdictions for tax purposes.  It is particularly relevant

Posted in European Union, Regulatory and legislative updates, UK

No-deal Brexit and contractual continuity

On 8 January 2019 the FCA published a consultation paper, CP19/2, which sets out details of the financial services contracts regime (FSCR) and the rules the FCA proposes should apply to firms during the regime.  The consultation closes on 29 January 2019. The legislative bones of the regime are set out in the draft Financial

Posted in Regulatory and legislative updates, UK

UK: FCA finalised guidance on fairness of variation terms in financial services consumer contracts

The FCA published its finalised guidance on the fairness of variation terms in financial services consumer contracts under the Consumer Rights Act 2015 on 19 December 2018. While there weren’t many substantial changes from the FCA’s draft guidance, a number of helpful clarifications were made. Importantly, the FCA has emphasised that the responsibility for ensuring

Posted in European Union, Market developments, Regulatory and legislative updates, UK

UK: Corporate Insurance Newsletter – December 2018

The Hogan Lovells’ Corporate Insurance Newsletter for December has been published.  This provides a round-up of UK, EU and international regulatory developments relevant to UK based insurance market participants.  In this issue, amongst other items, we cover: Latest Brexit related consultation papers and other material from the HM Treasury, PRA and FCA  Regulation of claims

Posted in Regulatory and legislative updates, UK

UK: Latest on Credit Risk Mitigation

On 10 January 2019, the Prudential Regulation Authority released Consultation Paper (CP) 1/19, setting out certain proposed changes to Supervisory Statement (SS) 17/13 “Credit risk mitigation”. SS 17/13 was produced to provide clarification on the PRA’s expectations with respect to the recognition of credit risk mitigation in the calculation of certain risk-weighted exposure amounts. The

Posted in European Union, Regulatory and legislative updates, UK

No-deal Brexit: new publications from HM Treasury and the FCA

HM Treasury published guidance on 8 January 2019 for financial services institutions in a no-deal Brexit situation, updating HM Treasury’s 23 August 2018 technical notice on the financial services regulatory framework in the event of a no-deal Brexit. The guidance is limited to advising UK and EEA firms to take steps to ensure continuity of

Posted in European Union, Regulatory and legislative updates, UK, Uncategorized

No-deal Brexit: reorganisation and winding up of insurers

Introduction As part of its planning for a no-deal Brexit, on 30 November HM Treasury published a draft of the Credit Institutions and Insurance Undertakings Reorganisation and Winding Up (Amendment) (EU Exit) Regulations 2018 (the “Draft Regulations“), which have been laid before Parliament, along with explanatory information. The Draft Regulations will take effect on exit

Posted in European Union, Regulatory and legislative updates, UK

Draft Insurance Distribution (Amendment) (EU Exit) Regulations 2019 published by HM Treasury: Brexit SI

On 21 November 2018, HM Treasury published a draft version of the Insurance Distribution (Amendment) (EU Exit) Regulations 2019, together with an explanatory information document. The purpose of the Regulations is to correct deficiencies in retained EU law relating to the Insurance Distribution Directive ((EU) 2016/97) (IDD) that arise from the UK leaving the EU,

Posted in European Union, Market developments, Regulatory and legislative updates, Spain

Too soon to harmonize EU Insurance Guarantee Schemes?

Insurance Guarantee Schemes (“IGS“) provide last resort protection to consumers in the event that their insurance company becomes insolvent or simply unable to fulfill their contractual commitments. This sort of protection networks have been made effective through directives in other sectors, such as banking and securities. Nevertheless, a directive has yet to be implemented for

Posted in European Union, Regulatory and legislative updates, UK

“No deal” Brexit: UK Government publishes details on draft regulations amending FSMA

On 22 November 2018, HM Treasury published Explanatory Information on the draft Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (the “Draft FSMA Regulations“). The Draft FSMA Regulations will make amendments to the Financial Services and Markets Act 2000 (“FSMA“) and related legislation to ensure that the UK’s financial services framework continues

Posted in European Union, Regulatory and legislative updates, UK

UK regulators prepare for ‘No Deal Brexit’ with a Temporary Permissions Regime

HM Treasury has proposed a Temporary Permissions Regime (“TPR“) as a temporary measure to replace the passporting regime in Schedule 3 and 4 of the Financial Services and Markets Act 2000 (“FSMA“) in the event of a no-deal Brexit. The legislative framework for the TPR is found in the EEA Passport Rights (Amendment, etc., and