View more on these topics

FCA chief: Brexit passporting rights need to be solved

Andrew-Bailey-Conference-Alt-2013-700x450.jpgFCA chief Andrew Bailey has urged policymakers to secure the future of long-term pensions and insurance contracts after Brexit by avoiding the ‘cliff-edge’ removal of passporting rights.

Passporting rights are often needed to pay out on pensions and other contracts for expats or from firms with headquarters overseas. Treasury select committee chair Nicky Morgan and others, including the Association of British Insurers, have noted that transitional arrangements could be insufficient years down the line and that clear rules were needed to maintain continuity.

In an interview with Bloomberg, Bailey says: “It’s eminently solvable but it has to be solved, and if it isn’t solved, it’s a big issue. As I’ve said before it’s a symmetric big issue in that it effects both the UK and the EU. If the passporting both inwards and outwards of the UK falls away without any replacement that’s where the contract continuity issue bites because there are things that are done in terms of servicing, adjusting, maintaining contracts which depend upon having a regulatory permission or authorisation.

“If they are not there you can’t do them. That’s critical to these contracts, critical in insurance and in derivates.”

After Morgan wrote to the Government, Chancellor Philip Hammond replied that the Government was “alive” to risks passporting issues could have on areas like cross-border pensions.

Recommended

1

Govt ‘alive’ to Brexit risk for expat pensions

The Government has said it ‘alive’ to the risks Brexit could pose to expat pensions after starting talks with the industry over safeguards. The chair of the influential Treasury select committee Nicky Morgan wrote to Chancellor Philip Hammond last month sounding a warning over the future of long-term pensions and insurance policies that are currently sold by UK companies […]

Woodford-Neil-700x450.jpg
1

Woodford: Market bubble warning signs are flashing red

Neil Woodford says monetary policy is driving a global stock market bubble and there are “so many lights flashing red” he can’t keep count. Woodford lists Bitcoin going through $10,000, European junk bonds yielding less than US Treasuries, historic low levels of volatility or triple-leveraged ETFs attracting gigantic inflows among the worrying signs. “Ten years on […]

Fidelity defends 2% outperformance ceiling on new fees model

Fidelity International has defended its 2 per cent ceiling for outperformance in its new performance fee charging model, arguing it does not encourage index hugging and instead represents a material deviation from the benchmark. Fidelity yesterday revealed the details of its variable management fee model, a typeof fulcrum fee, which it first revealed it was adopting […]

Tapering of annual allowance – adjusted and threshold income

The definitions of adjusted income and threshold income used to determine whether, and to what extent, someone’s annual allowance will be reduced can be confusing.  Here we try to make sense of it all. The annual allowance will be reduced for high income individuals from 6 April 2016.  Our previous article Tapering of annual allowance […]

Portfolio-Bonds-Investment-Business-700x450.jpg

Bull markets don’t die of old age

In our latest Investment Clock Strategy report, Head of Multi Asset Trevor Greetham comments that he does not see the signs that usually signal the end of a bull market. RLAM’s Investment Clock model is in the equity friendly Recovery phase. Central banks are reluctant to raise interest rates and real returns on cash are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment