Insurance in Financial Services UK

The FCA’s Coverholder and TPA thematic review | Due Diligence, Audits and MI

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This is the third of a four-part blog series on the FCA’s Coverholder and TPA thematic review (often referred to by the FCA as its “distribution chain” thematic review).

There has been a fundamental shift in regulatory expectation and good market practice for delegated authority control and oversight frameworks.

This shift may increase cost in key control functions reinforcing the importance of a robust conduct risk assessment (as discussed in our previous blog) to achieve a proportionate and risk-based control and oversight framework. The risk assessment shows you the higher gross risk areas of your business and why they are high risk, enabling you to direct your resource – whether it be delegated underwriting management, compliance, claims or underwriting resource - so that you get more bang for your buck. 

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Posted on 30/03/2015 | 0 Comments

FCA Business Plan ǀ What firms can expect from the FCA in 2015-16

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Yesterday, the Financial Conduct Authority (FCA) published its Business Plan. Firms should read this document closely, as it outlines the FCA’s view on the key risks to its objectives, its priorities, and the activities it intends to undertake in 2015-16. 

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Posted on 25/03/2015 | 0 Comments

The FCA’s Coverholder and TPA thematic review | Proportionality through risk assessments

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This is the second of a four-part blog series on the FCA’s Coverholder and TPA thematic review (often referred to by the FCA as its “distribution chain” thematic review)

The diversity and complexity of Coverholder and TPA populations is a challenge when mitigating conduct risk. A risk-based and proportionate solution is fundamental, so starting with a conduct risk assessment is sensible to provide structure and identify the different exposures to conduct risk. 

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Posted on 23/03/2015 | 0 Comments

The FCA's Coverholder and TPA thematic review | How prepared are you?

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As we near the outcome of the Financial Conduct Authority’s Coverholder thematic review, general insurance firms across the Lloyd’s and London market should consider how they stack up against regulatory expectations and current good market practice. Over the next month, we will be producing a series of short blogs covering some of the key elements of delegated authority control and oversight that we see the market currently designing and implementing:

Blog 1: Conduct risk assessments

Blog 2: Due diligence, audits and Management Information (MI)

Blog 3: Key market solutions and commercial challenges

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Posted on 16/03/2015 | 0 Comments

PRA and FCA consult on measures designed to encourage and protect whistleblowers

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The PRA and FCA have published a joint consultation paper (CP) on a series of measures to formalise whistleblowing procedures in firms. The aim is to encourage employees to raise concerns and protect whistleblowers from victimisation. This initiative responds to the Parliamentary Commission on Banking Standards’ recommendation to put in place effective mechanisms to allow employees to raise concerns internally.

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Posted on 24/02/2015 | 0 Comments

UK regulators refine the scope of the Senior Managers Regime and clarify how the ‘Presumption of Responsibility’ will be applied

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The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have confirmed how the new Senior Managers Regime (SMR) and Senior Insurance Managers Regime (SIMR) will apply to Non-Executive Directors (NEDs) in banks and insurers respectively. This follows the responses received to the Consultation on Strengthening accountability in banking: a new regulatory framework for individuals –CP14/14 published in July 2014, which expressed concern about the proposed approach to NEDs under the SMR.

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Posted on 24/02/2015 | 0 Comments

Advisory & supplier frameworks

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This is the final entry in our series of three blogs which cover the topic of third party risk. In this article, we explore the design and implementation of frameworks which organisations are implementing in order to help them manage the third party risk. We highlight some of the stages and challenges of creating such a framework and the requirement to make it specific to your organisation in order for it to be successful.

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Posted on 5/02/2015 | 0 Comments

Software Asset Management | The costs of mismanaging software

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This is the second in a series of three blogs which covers the topic of third party risk. Last time we looked at performing contract compliance inspections of the third parties that you engage with. But what about your organisations compliance with its contractual obligations to third parties? In this blog we explore the area of Software Asset Management (SAM) in more detail, the benefits of good SAM and considerations when building an internal SAM capability.

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Posted on 29/01/2015 | 0 Comments

Financial Services | Third Party Risk

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Third party risk is currently a ‘hot topic’ within the Financial Services sector and senior executives across many organisations in the industry are having discussions to agree strategies, procedures and policies to mitigate the risks posed by third parties. This short blog is the first in a series of three which cover the topic of third party risk. In this first blog, we explore the use of contract compliance inspections in order to obtain assurance over third parties as well as generating significant financial recoveries.

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Posted on 23/01/2015 | 0 Comments

What will savers do with their new pension freedom?

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The Chancellor announced in the Budget that from April 2015 no-one will have to buy an annuity. This was a huge blow for the £14bn-a-year annuity industry, which has thrived on ‘forced’ annuitisation. Over 300,000 people retire each year with a defined contribution pension, most of whom are required to buy an annuity under current legislation. The equity’s market verdict on the announcement was dramatic: share prices of some life companies were down 40% on the day. In the first half of 2014 annuity sales have fallen by over 50%.

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Posted on 15/01/2015 | 0 Comments