View more on these topics

PRA will have statutory insurance objective to ensure protection

The Prudential Regulation Authority is to have a specific stat-utory insurance objective to contribute to securing an appropriate degree of protection for those who are or about to become policyholders.

The Government’s latest consultation document contains the objective in response to concern the PRA could be too focused on banking regulation.

The insurance objective will sit alongside the regulator’s general objective of ensuring the safety and soundness of individual firms.

The paper also confirms the intention to establish a prompt intervention framework which will put regulated firms into one of five categories, according to the level of risk a firm’s circumstances pose to its viability.

The five stages have “presumed actions” attached to them ranging from normal risk assessment and processes while ensuring workable winding-up plans are in place in stage one to forcing closure in stage five.

The PRA retains a rule-making power but will be required to carry out cost-benefit analyses before it implements any rules, even those originating from Europe over which it has no control. Under the current rules, the FSA has a duty to produce estimates whereas the PRA it will only have to do so where it is “proportionate” to do so.

External complaints made against the PRA will be dealt with by the Bank of England.

Recommended

Renaissance sets £500m goal for Ucits

Renaissance Asset Managers has set a target of more than doubling the funds under management in its Ucits range to reach £500m by the end of the year. It currently has £220m in assets in Ucits. The company is also aiming to reach £1bn by the end of 2012. The company is to focus on […]

FOS chief executive says £25m levy boost was vital

Financial Ombudsman Service chief executive Natalie Ceeney has justified the need for £25m in additional reserves after payment protection insurance complaints caused the FOS to end the year with a £7.6m deficit. Ceeney says the judicial review launched by the British Bankers’ Association in October, challenging the FSA and the FOS over PPI redress measures, […]

Northern Rock up for bids with hopes for £1bn sale

The Government has put Northern Rock up for sale, with reports suggesting the nationalised bank will be valued at £1bn. Speaking during last week’s Mansion House address in London, Chancellor George Osborne said a sale was likely to generate “substantially the best value” for taxpayers. He said: “On behalf of you, the taxpayer, I have […]

To be and not to be – Multi asset investing with conviction

At Pictet Asset Management we believe active management of asset allocation is the most important generator of returns. What is not to be in our portfolio is just as important as what is to be because good performance is determined as much by the assets you avoid as by those you hold. The FP Pictet Multi Asset Portfolio managers are not wedded to any particular […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    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