Insurance in Financial Services UK

PSD2 | Are firms ready?

PSD2

Two months from today, on 13 January, the revised Payment Services Directive (PSD2)1 will come into effect across the European Union (EU). To understand how prepared the industry is for this deadline Deloitte surveyed over 70 firms across 18 European countries, between August and September, to gather their views.

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Posted on 13/11/2017 | 0 Comments

Insurance Capital Standard (ICS) – Where do we stand on the eve of the IAIS annual conference?

ICS Graph

On 2nd November, insurance supervisors from across the world will converge on Kuala Lumpur for an annual conference that will take stock of progress in establishing a global capital standard for insurers dubbed the ‘Insurance Capital Standard Version 1.0’. On the eve of this conference, this blog analyses progress in the discussions to date and the key issues that remain outstanding and could yet hinder an agreement.1

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Posted on 18/10/2017 | 0 Comments

A New European System of Financial Supervision: European Commission proposes changes to the powers, governance and funding of the ESAs

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The European Commission has proposed a legislative package that is intended to increase substantially the powers of the three European Supervisory Authorities (ESAs)1 and to replace the funding currently provided by national competent authorities (NCAs) with direct funding by firms.

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Posted on 09/10/2017 | 0 Comments

The Building Society Risk Function – How effective is yours?

Risk management challenge

This blog is part of a series of insights on Building Society risk management.

One of the key focus areas of regulatory reviews performed over the last 18 months has been the effectiveness of the Risk Function. As part of the feedback issued to Building Societies following their supervisory review and evaluation process, the Prudential Regulation Authority (‘PRA’) has emphasised that it considers an effective Risk Function to be crucial to the future well-being of societies and the successful delivery of their business strategies.

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Posted on 02/10/2017 | 0 Comments

Stepping up to the risk management challenge for Building Societies

Risk management challenge

Over the last 18 months, the level of regulatory focus on the adequacy of the design, implementation and operating effectiveness of Risk Management Frameworks within the Building Society sector, and the adequacy of their Risk Functions, has heightened significantly. As a direct consequence, these matters are high on the agenda of Boards, Risk Committees and Audit Committees across the sector.

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Posted on 02/10/2017 | 0 Comments

FCA’s competition remit shows its teeth: investment consultancy market investigation is launched

FCA

On 14 September, the Financial Conduct Authority (FCA) announced its final decision to make a Market Investigation Reference (MIR) to the Competition and Markets Authority (CMA) in relation to investment consultancy and fiduciary management services. This is the first time that the FCA has made such a reference to the CMA. The statutory deadline for the investigation is 13 March 2019.

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Posted on 25/09/2017 | 0 Comments

Equity Release Mortgages – where does the PRA now stand?

Equity

For an asset class that represents just 1.4% of insurer’s asset holdings1, equity release mortgages (ERMs) have consumed a remarkable amount of firm and supervisory time. A decade or so ago, the regulatory challenge of this asset class lay on the conduct side. More recently, however, and not without some irony, the main mitigant of these conduct risks, the no negative equity guarantee2 (NNEG), has switched the focus primarily onto the inherent prudential risks of equity release, namely its illiquidity and, owing to the NNEG, the long term exposure it brings to the fortunes of the housing market without further recourse to the borrower.

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Posted on 18/09/2017 | 0 Comments

Regulatory Change and Investing in the Risk Function of the Future

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Banks are confronted by an ever increasing volume of compliance challenges. These challenges are fuelled by an increase in analytical complexity associated with regulatory and accounting requirements. This increase in analytical complexity has made solutions more complex to implement in an effective and efficient manner. Furthermore, the deadlines of these new regulatory requirements can be years apart and the requirements are often targeted on a specific business function, which makes it difficult to create synergies between compliance solutions.

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Posted on 14/09/2017 | 0 Comments

Robo-advice - regulatory uncertainty down, commercial challenges up

Robo_Advice

In our report “The next frontier - the future of automated financial advice in the UK”, published in April, we noted that a key regulatory challenge for firms in providing automated advice is understanding which side of the “advice boundary” their services fall on – guidance or regulated advice. We argued that the success of automated models in the UK would therefore depend, in part, on how much clarity the Financial Conduct Authority (FCA) would be able to provide about where the boundary lies.

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Posted on 01/09/2017 | 0 Comments

Insurers’ recovery and resolution: EIOPA calls for extensive powers mirroring international standards already applied to banks

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The European Insurance and Occupational Pensions Authority’s (EIOPA’s) recently-issued opinion on the harmonisation of recovery and resolution frameworks for the insurance sector is a landmark step for the insurance industry towards implementing the G20’s 2011 commitment to end “too big to fail” for financial services1. While a harmonised resolution regime has been implemented (and applied this year in a live context) for the European banking sector, insurance resolution has so far remained a national matter. Consequently, substantial differences in regime and approach currently apply across Europe.

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Posted on 09/08/2017 | 0 Comments