The International Underwriting Association (IUA) is urging UK insurance regulators to state clearly the prime authority of company boards over individual responsibilities for complying with industry rules.
Responding to a consultation exercise on a new senior insurance managers regime, the London-based IUA called for “a strong overarching statement that individual duties remain subordinate to those exercised by a firm’s board.”
Under proposals from UK financial sector watchdog the Prudential Regulation Authority (PRA) senior executives, such as chief executive officers (CEOs), chief finance officers (CFOs) and chief risk officers (CROs), would be charged with demonstrating integrity, honesty and skill and dealing with regulators in an open and co-operative way.
“The new regime appears to be reasonable and proportionate,” said Chris Jones, the IUA’s director of market services. “It is particularly encouraging to see that a similar set up for the banking industry has not been directly transposed into insurance, and the different supervisory requirements of our industry have been acknowledged.
“As the main focus is on individual culpability, however, it is not entirely clear how this would complement collective board responsibility. These two elements could seem to be at variance and companies would therefore like to see a stark statement affirming the board’s supremacy.”
Elsewhere in its consultation response the IUA also requested further guidance on the type of roles that the PRA might designate as ‘key function holders’, in addition to named senior insurance managers.
“IUA members widely support the need to formally embed regular assessments and reviews for those people performing key responsibilities,” said Jones. “In order to ensure that these requirements remain proportionate and relevant it would be helpful if the PRA could be as clear and transparent as possible about its expectations of firms.”
The treatment of non-executive directors is not included in the current consultation but is expected to be considered in a separate process this year. The IUA wants this to be completed at the earliest opportunity, as it believes that continuing uncertainty may discourage good candidates from accepting roles.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
As the May 25 deadline for Europe’s General Data Protection Regulation (GDPR) inches closer, many treasurers are being lumped with the task of ensuring their wider company is compliant.
APIs may be a solution to MT940 challenges, says Karen Fagan, treasury operation manager, for British television company, ITV.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.