IAIS published an application paper on the regulation and supervision of mutuals, cooperatives, and community-based organizations (MCCOs) in increasing access to insurance markets. IAIS, through the Insurance Core Principles (ICPs), provides a globally accepted framework for the supervision of the insurance sector. This paper offers guidance on proportionate application of ICPs, which should contribute to removing unnecessary barriers by disproportionate regulation and supervision while ensuring appropriate policyholder protection.
The primary focus of this paper is for insurance supervisors that are seeking to enhance financial inclusion in developing markets. The paper describes the key features and background of the MCCO sector, thus offering an adequate understanding of the context in which the ICPs could be applied proportionately. The paper deals with relevant ICPs and contains the application guidance. The ICPs are, for this purpose, clustered into formalization and licensing; corporate governance; capital requirements and capital resources; portfolio-transfers, mergers, demutualization and winding-up; supervision general, and supervision and supervisory review.
Keywords: International, Insurance, Regulation, Supervision, MCCO, ICP, IAIS
PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.
IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.
MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.
BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.
FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.
EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).
As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).