View more on these topics

Panthers get claws into life office regulation

The FSA this week outlined plans to radically overhaul life office regulation, including drafting in former senior industry executives dubbed “grey panthers” to provide expertise.

The move follows the critical internal report by Ronnie Baird into the regulator&#39s handling of Equitable Life.

The Tiner project – run by FSA managing director John Tiner – will tighten up solvency and life office reporting requirements. Life offices will be subject to more “proactive and challenging regulation than in the past”.

As recommended in the Baird review, the changes brought in by the Tiner project will tighten up existing solvency requirements such as the use of future profits, financial reinsurance, subordinated debt and contingent loans.

Life offices will have more onsite visits and the responsibilities of senior management will come under greater scrutiny. A full report on Tiner&#39s progress will be made by September 2002.

FSA managing director John Tiner says: “Supervisors need to be proactive, apply judgement, think laterally and use market knowledge to challenge behaviour and assertions of firms and act quickly wherever they identify a potential issue. This will amount to a major and radical overhaul of insurance regulation. Our new approach will boost the regulator&#39s ability to identify possible issues earlier on and nip problems in the bud.”

Recommended

Davies hints at radical change as he savages &#39toothless&#39 PIA

FSA chairman Howard Davies has rubbished the PIA&#39s record, labelling it costly, ineffective, intrusive, oppressive, toothless and inadequate while tipping radical change to polarisation.Providers say radical reform is now more likely contrary to expectations following the FSA&#39s open meeting in October when the head of polarisation review David Severn appeared to favour gap-filling over multi-ties.Davies, […]

PIA fines Jacobs Insurance Brokers

The PIA has fined Jacobs Insurance Brokers of Cavendish House, Cavendish Road, London E4 the sum of £75,000 for breaches of its rules relating to selling practices, in particular its sale of versatile investment plans, and for pensions review failings.The firm was placed in insolvent liquidation on October 8, 2001 because of its outstanding pensions […]

Exclusive – Black expected to leave Towry Law

Towry Law chief executive Douglas Black is expected to leave the National IFA soon.The IFA&#39s Australian owner AMP says it cannot comment on market speculation. Black led the negotiations with AMP and the Investors Compensation Scheme leading up to Towry&#39s purchase by AMP in June in a deal worth £75.7m as exclusively predicted in Money […]

Berkeley blames regulation for increase in network fees

IFA network Berkeley Independent Advisers is increasing fees and charging extra for some compliance services, with one month&#39s notice of the changes.The network&#39s 250 member firms have had a letter explaining its revised charging structure from January 1, including a minimum monthly fee being levied for the first time of £562.50 for firms with an […]

When is £1m not £1m?

Neil Jones is technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The residential nil-rate band (RNRB) was first announced in […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment