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
BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.