1 / 10

Reforming european and uk financial regulation

Reforming european and uk financial regulation. 19 March 2012 Alastair Evans, Head Government Policy & Affairs , Lloyd’s. Contents. Insurance Legislative and Regulatory Environment Reform of UK Financial Regulation Solvency II. Insurance Legislative and Regulatory Environment. Lloyd’s

yetta
Télécharger la présentation

Reforming european and uk financial regulation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Reforming european and uk financial regulation 19 March 2012 Alastair Evans, Head Government Policy & Affairs, Lloyd’s

  2. Contents • Insurance Legislative and Regulatory Environment • Reform of UK Financial Regulation • Solvency II Reforming European and UK Regulation 19 March 2012

  3. Insurance Legislative and Regulatory Environment • Lloyd’s • Formidable array of debates, challenges and change internationally, affecting both the substance and architecture of insurance regulation. • Individual countries, e.g. US (Dodd-Frank, establishment of FIO). • EU: ESRB, EIOPA, Solvency II, revision of Mediation Directive, insurance guarantee schemes, data protection, anti-discrimination proposals (gender, age and disability) • Globally: work of IAIS on systemic risk, regulation of internationally active insurance groups. Reforming European and UK Regulation 19 March 2012

  4. The Lobbying Environment Global environment G 20 WTO EU IMF SANCO MARKT OECD EMPL TAXUD European Commission ENV COMP ECON EMPL Economic & Social Committee IMCO AGRI TRADE European Parliament TREN ENTR INTA WB ENVI JURI ITRE UNEP ARC Council/ EU Presidency European Central Bank ECJ Lloyd’s IASB IAA/EAG IFRIC EFRAG CESR EFC EIOPC ESRB NCOIL Occupational pensions IAIS Insurance mediation FSC Insurance groups EIOPA Financial stability FCC Joint Forum NAIC Solvency II FSB IOPS = central bodies = representation of States Reforming European and UK Regulation 19 March 2012

  5. Reform of UK Financial Regulation • Reforms were principally a response to the banking crisis. • Government’s first condoc (July 2010): insurance supervision hardly mentioned. • Insurance has different features from banking (business model, performance during crisis). • New structure applies across the financial sector. Reforming European and UK Regulation 19 March 2012

  6. Reform of UK Financial Regulation (cont’d) • Main issues identified in our responses: • FPC should have access to sufficient levels insurance expertise. • PRA should include a separate insurance division headed by individual of same level of seniority as for banking. • PRA and FCA must be under obligation to publicly consult on rules. Reforming European and UK Regulation 19 March 2012

  7. Reform of UK Financial Regulation (cont’d) • The regulatory bodies’ rule making process must be subject to the full range of statutory safeguards that exist under FSMA. • There must be proper co-ordination between the new regulatory authorities. • There must be proper co-ordination between the authorities in making input into EU debates. • Transitional arrangements must be well managed given other regulatory challenges currently faced by the insurance industry • PRA should prudentially supervise Lloyd’s market. Supervisory co-operation arrangements between regulator and Lloyd’s should continue. Reforming European and UK Regulation 19 March 2012

  8. Reform of UK Financial Regulation (cont’d) • These concerns largely taken on board by Government in recent condocs, in draft Financial Services Bill and proposed Memorandum of Understanding between the regulators. • Welcome establishment of shadow PRA and FCA teams within FSA. • Will continue to monitor draft Financial Services Bill closely. Reforming European and UK Regulation 19 March 2012

  9. Solvency II • Complete overhaul of EU system of insurance supervision. • Objectives • Three Pillars • Omnibus II/Level 2 measures. • Challenging Legislative Timetable • Some unresolved issues (length of provisional equivalence period for third countries, currency risk). • Lloyd’s: £300m expenditure on preparation. • Supportive of overall regime. • 2014: implementation date for firms. Reforming European and UK Regulation 19 March 2012

  10. Reforming European and UK Regulation 19 March 2012

More Related