Our top Insurance stories in August 2013
The Financial Conduct Authority’s (FCA’s) fine and withdrawal of significant influence functions for David Davis, a compliance officer of Paul E Schweder Miller & Co, has put the spotlight on SIF responsibilities at a time when the regulator is focusing heavily on the insurance industry. Legal experts warn that persons holding a SIF need to be “much more active” in understanding what is going on in their business.
The FCA has rejected requests by respondents to its recent discussion paper on transparency that it should say more about a skilled persons review. David Morey, a director in the insurance regulatory practice at PwC, and one of the skilled persons appointed for use by the FCA, speaks to Compliance Complete.
Banks and insurers are under enormous pressure to cut costs as they restructure, but it is “treacherous territory” to apply these cuts to legal and compliance on a one-to-one ratio with the rest of the organisation, when compliance needs are disproportionately high, warns Tim House, global head of litigation at Allen & Overy. The value of D&0 insurance in the new regulatory climate comes under scrutiny in this article, with perspectives from leading legal experts and the insurance broker Marsh.
Many fund managers feel that the regulator is unclear about what it expects in terms of product suitability under the Retail Distribution Review (RDR), the Investment Management Association has revealed. Alex Davidson reports on the “lingering misunderstanding” between the FCA and the industry.
Financial Services Consumer Panel chair Sue Lewis warmly welcomes new FCA guidance setting out how the regulator intends to deliver its objectives. “I am particularly pleased the FCA will examine whether consumers are in a position to drive healthy competitive markets and, if not, what needs to change,” she said.
The FCA will consider whether to amend its rules or do thematic work on insurance money laundering after reviewing the outcome of a consultation by the International Association of Insurance Supervisors on revision to its insurance core principle in this area, lawyers warn.
Lawyers highlight a serious problem that advisers face in seeking to meet RDR requirements, a failure highlighted in the FCA’s early review of the RDR’s implementation to date.
General insurers are warned to act now on claims handling and on tracking claims data, given the FCA’s intensive focus on these areas. Firms should “engage with the FCA, either directly or through the Association of British Insurers, on how claims handling is compared and data collected. This is a complex process, and so they must engage early,” Alexis Roberts, partner at Pinsent Masons, told Compliance Complete.
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Taken from Accelus Best – a monthly round up of the top stories from Compliance Complete. Please contact firstname.lastname@example.org if you would like to be added to the newsletter distribution list.