“The Solvency Capital Requirement, or SCR, is designed to protect policyholders by helping to make sure that insurers can survive difficult periods and pay claims as they fall due.”
In this episode of "The Standard Formula"...more
In recent years, demographic changes and macroeconomic factors have led to significant growth in insurance markets. Within insurance markets, a much more active market in trading “back-books” of insurance liabilities has...more
5/22/2024
/ Bermuda ,
Corporate Governance ,
EIOPA ,
Financial Institutions ,
Insurance Industry ,
Investment ,
NAIC ,
ORSA ,
Private Equity ,
Prudential Regulation Authority (PRA) ,
Regulatory Agenda ,
Reinsurance ,
Shareholders
This chapter discusses and analyses the investment rules that apply to Solvency II insurers and reinsurers in the United Kingdom.
In particular, this chapter will outline the “prudent person principle” and discuss the...more
4/30/2024
/ EIOPA ,
Environmental Social & Governance (ESG) ,
EU ,
Financial Institutions ,
Insurance Industry ,
Investment ,
Investors ,
Popular ,
Prudent Investor Rule ,
Prudential Regulation Authority (PRA) ,
Solvency II
In the latest installment of “The Standard Formula” Back to Basics series, podcast host and Europe financial institutions head Robert Chaplin is joined by colleague Mary Bonsu to provide listeners with a deeper understanding...more
Authorised push payment (APP) fraud in the UK is the largest type of payment fraud, both in number of scams and value of losses. It involves a fraudster convincing someone to send a payment to a bank account that the...more
4/4/2024
/ Banking Sector ,
Banks ,
Financial Crimes ,
Financial Institutions ,
Financial Services Industry ,
Fraud ,
Payment Processors ,
Payment Systems ,
Reimbursements ,
Reporting Requirements ,
UK
1. Background to the Matching Adjustment -
“Where insurance and reinsurance undertakings hold bonds or other assets with similar cash flow characteristics to maturity, they are not exposed to the risk of changing spreads...more
Group supervision regulates the impact that members of a Solvency II group may have on a UK Solvency II insurer. The rules governing Solvency II groups are contained in the PRA Rulebook (Group Supervision), the Solvency 2...more
In this alert we consider various reforms and proposals to the banking sector announced by UK regulators.
On 11 January 2024, HM Treasury published a consultation paper on enhancing the UK’s Special Resolution Regime for...more
In our fourth installment of “The Standard Formula” Back to Basics series, host Robert Chaplin is joined by Feargal Ryan for a detailed discussion on group supervision under Solvency II. Topics covered include circumstances...more
(Re)insurance is a global business. It is common for (re)insurance groups to operate in a range of jurisdictions via:
i. locally incorporated and authorised subsidiaries,
ii. local branches of third country...more
On 12 December 2023, the UK Prudential Regulation Authority (PRA) published the first of two near-final policy statements on the implementation of revisions to the Basel 3 standards, known in the U.K. as Basel 3.1. This...more
1/18/2024
/ Banking Sector ,
Banks ,
Basel III ,
Capital Markets ,
Financial Institutions ,
Financial Regulatory Reform ,
Financial Services Industry ,
Pillar 2 ,
Proposed Rules ,
Prudential Regulation Authority (PRA) ,
Risk Management ,
UK
UK regulators have recently announced a number of reforms for banks and other financial institutions.
- On 23 November 2023, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) (together,...more
1/8/2024
/ Banking Sector ,
Capital Requirements Regulation (CRR) ,
Cryptocurrency ,
EU ,
Financial Conduct Authority (FCA) ,
Financial Institutions ,
Financial Regulatory Reform ,
Financial Services Industry ,
Hedge Funds ,
Holding Companies ,
Investment Firms ,
Investment Management ,
Limited Partnerships ,
New Guidance ,
Private Equity ,
Private Equity Funds ,
Prudential Regulation Authority (PRA) ,
Regulatory Agenda ,
Regulatory Reform ,
Regulatory Requirements ,
Remuneration ,
Sovereign Wealth Funds ,
UK
The primary function of an insurer is the assumption and management of insurance risk. Very commonly, this will involve an insurer passing (or ceding) risk to other (re)insurers or protection providers in the relevant market....more
Own funds is the Solvency II term for the items that constitute a (re)insurer’s regulatory capital. These are principally balance sheet items, with limited allowance for off-balance sheet items.
Own funds are items that...more
On 16 November 2023, the UK Prudential Regulatory Authority (PRA) released draft measures to address perceived risks in the market for funded reinsurance, which is widely used as part of transactions that shift pension scheme...more
On 6 November 2023, the Bank of England (the UK’s central bank) issued a discussion paper on the regulation on stablecoins, alongside another paper by the UK Financial Conduct Authority (FCA) (DP23/4) and a “Dear CEO” letter...more
The UK’s Metro Bank announced a landmark refinancing package on 8 October 2023, following a series of regulatory setbacks and concerns in the markets over the financial condition of the bank. The proposal now awaits...more
"The Standard Formula” host Robert Chaplin introduced the first in the podcast’s Back to Basics series, which will dissect the entirety of the Solvency II regime. In the series’ inaugural episode, Rob is joined by associate...more
The EU’s Solvency II regime came into force in the UK on 1 January 2016, following many years of development in which the UK was deeply involved. In June 2020, post-Brexit, the government announced a wide-ranging review of...more
This edition of Skadden’s quarterly Insights looks at the latest trends in shareholder activism, the scrutiny companies are facing over their ESG disclosures and employment considerations for using AI in the workplace, among...more
6/27/2023
/ Acquisitions ,
Activist Investors ,
Anti-Discrimination Policies ,
Anti-Money Laundering ,
Artificial Intelligence ,
Capital Markets ,
Confidential Information ,
Corporate Governance ,
Corporate Restructuring ,
Cryptoassets ,
Cryptocurrency ,
Disclosure ,
Employer Liability Issues ,
Enforcement Actions ,
Environmental Social & Governance (ESG) ,
EU ,
Financial Institutions ,
Member State ,
Mergers ,
New Rules ,
No-Action Requests ,
Private Equity ,
Proxy Season ,
Publicly-Traded Companies ,
Reporting Requirements ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Shareholders ,
Technology ,
UK
In late January 2023, the UK government issued a detailed consultation paper to introduce a long-awaited resolution regime for UK (re)insurers. The new regime addresses long-standing concerns about how the UK would manage one...more
The UK Prudential Regulation Authority (PRA) laid out its priorities for insurance supervision this year in a 10 January 2023 Priorities Letter. In this newsletter, we summarise the broad themes emerging from the Priorities...more
1/30/2023
/ Business Plans ,
Creditors ,
EU ,
European Commission ,
Exit Planning ,
Financial Institutions ,
Financial Markets ,
Financial Services Industry ,
Insurance Industry ,
Investment ,
Legislative Agendas ,
Life Insurance ,
Market Conditions ,
Proposed Legislation ,
Prudential Regulation Authority (PRA) ,
Reinsurance ,
Risk Management ,
Solvency II ,
UK
Following the recently introduced Solvency UK for insurers, the UK Chancellor of the Exchequer Jeremy Hunt (the UK finance minister) has announced the Edinburgh Reforms, a further series of reforms aimed at the UK financial...more
12/20/2022
/ Bank of England ,
Banking Sector ,
Digital Currency ,
Enforcement ,
EU ,
Financial Institutions ,
FinTech ,
Investment ,
Investment Management ,
New Legislation ,
Proposed Legislation ,
Proposed Regulation ,
Regulatory Agenda ,
UK