PRA Letter to Insurers With Outstanding EU Liabilities Post Brexit
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 Article
MAS Amends Risk-Based Capital Framework Requirements for InsurersRelated Articles
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
