View more on these topics

European Council proposes Solvency II delay

The Council of the European Union has proposed to delay the final Solvency II deadline until January 1, 2014.

Insurers across Europe are due to implement the Solvency II rules, which address insurers’ capital requirements and risk management practices, by January 1, 2013.

The proposal, contained in the Council’s Presidency Compromise on the Omnibus II directive, suggests Solvency II’s legal requirements will need to be transposed into national law by March 31, 2013.

However, UK insurers would not be governed by the new solvency rules until January 1, 2014.

PricewaterhouseCoopers global head of Solvency II Paul Clarke says: “The Council of the European Union’s recommendation that the full requirements of Solvency II should not be implemented until January 1, 2014 is an interesting step forward, but it is not the full story.

“The European Parliament still needs to put forward its recommendation ahead of negotiations between the two groups before the market can fully understand where the issues around the Level 1 text and implementation date will end.

“It is unlikely the issue will be fully resolved until later this year, so it is vital insurers press ahead with their current plans and timetable. Any distraction now could prove potentially costly in the long run.”

FSA chief executive Hector Sants yesterday hinted the Solvency II deadline could be relaxed.

Sants, who gave a speech at the Association of British Insurers’ biennial conference in London, said: “We expect firms to be ready. Until the Commission changes the deadline we continue to expect firms to be ready for the deadline even if it is obviously recognised that the Commission is giving consideration to whether that deadline is achievable.”

Recommended

Brian Tora

Emotional response

I am finding it difficult to reconcile the upbeat tone I am hearing from investment managers with the dull performance of markets. This is not meant to be an about face following last week’s article. Rather, it is an acknowledgment that emotion still plays a considerable partin investment thinking. Perhaps it should not, particularly for […]

Lenders are squeezing SVR borrowers, says Which?

Which? has criticised lenders for failing to cut their standard variable rates, despite base rate being at a record-low of 0.5 per cent since March 2009. The consumer champion says 95 per cent of lenders have failed to pass on cuts in base rate to their SVR customers and a fifth of lenders have increase […]

3

US regulator sues JP Morgan and RBS for $800m

JP Morgan and Royal Bank of Scotland are being sued for more than $800m by the US credit union regulator for allegedly misselling mortgage-backed securities. The National Credit Union Administration claims both JP Morgan and RBS made “material misrepresentations” in the offering documents that made US corporate credit unions believe the risk was minimal. It […]

1

IMF seeks Greek bail-out assurances

The International Monetary Fund is blocking a £10.6bn aid payment to Greece until it receives assurances from European officials on a new Greek bail-out package. It was thought recent public commitments from the EU stating it would ensure Greece does not go bankrupt were enough to secure the funding, with the IMF due to release […]

Powerful estate planning tools ignored or forgotten by wealthy Brits

Canada Life IHT Survey 2016 Only a quarter of wealthy Brits have sought professional estate planning advice to ensure their families don’t pay more tax than required More than a quarter don’t even have a will and just one in five have gifted money Many say they do not need these tools but families would […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. The FSA are responsible for another gold plated false start. With the gentle hand of bigger brother, holding the reins.

    Just how much does this cost the investing public, I was told by somebody we all know that the GFSA only employes the best. God Help us.

  2. “We expect firms to be ready. Until the Commission changes the deadline we continue to expect firms to be ready for the deadline even if it is obviously recognised that the Commission is giving consideration to whether that deadline is achievable.”

    Even if the French come up with some excuse because they can’t or won’t come up with it in time? He won’t paddle the UK’s canoe!

    There’s an old saying that the EU makes laws for the British to observe to the letter and the French to flout at will.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com