Regulatory Developments in the European Union and the United Kingdom in Q1 2023
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Key Takeaways:
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The UK government has published its final package of reforms to the UK Solvency II regime which includes reducing the risk margin by 65% for long-term business and by 30% for general business. The reforms depart from a key proposal by the UK Prudential Regulation Authority, and the Bank of England has indicated that they could increase the likelihood of failure of life insurance firms in the United Kingdom.
- The UK Prudential Regulation Authority and the Financial Conduct Authority published a joint discussion paper on the review of the Senior Managers and Certification Regime, inviting responses by 1 June 2023.
- The UK Prudential Regulation Authority has published a consultation paper on dealing with insurers in financial difficulties, including its proposals for the implementation of the ‘write-down’ process as expanded by the Financial Services and Markets Bill.