PRA published a letter from Anna Sweeney, the Executive Director of Insurance Supervision, to regulated insurance firms with outstanding EU liabilities following the withdrawal of UK from EU. The letter is in relation to the firm's contingency plans to ensure ongoing service continuity in respect of EU liabilities.
Firms intending to rely on EU run-off regimes—as a temporary or permanent solution to ensure service continuity—should undertake a thorough analysis of their expected run-off profile and proactively discuss their proposed approach with the relevant EU authorities. For firms seeking to transfer their EU liabilities to an EU-authorized insurer, PRA cannot guarantee that any Part VII transfer will be sanctioned by the Court or that it will be sanctioned within firms’ intended time-frames. Therefore, firms should proactively contact the relevant EU authorities to ensure that the contingency plans, and any associated risks, remain satisfactory to them. All firms should ensure that they have considered relevant legal advice when finalizing contingency plans and that these plans have been discussed and approved at an appropriate level within the firm. Firms have been requested to provide confirmation that they have engaged with all relevant EU authorities regarding this letter by April 30, 2020.
Related Link: Letter
Keywords: Europe, EU, UK, Insurance, Brexit, Outstanding Liabilities, Contingency Plans, Run-off Regime, PRA
Previous ArticleMAS Amends Risk-Based Capital Framework Requirements for Insurers
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.