2017年-FCA英国金融行为监管局_guidance_on_the_fca_approach_to_the_review_of_insurance_business_transfers_2页_107kb

Regulator Assessment Summary: Qualifying Regulatory Provisions

Title of Proposal

Guidance on the FCA's approach to the review of insurance business transfers

Lead Regulator

Financial Conduct Authority (FCA)

Date of Assessment

September 2016

Commencement Date

2017

Origin

Domestic

Scope of Application

The guidance applies to the whole of the UK and affects insurance and reinsurance companies (life and non-life) that engage in portfolio transfers. It also involves consulting actuaries, law firms, and other advisors in the preparation of court documents for such transfers.

Number of Affected Businesses

It is estimated that 35–50 transactions per annum are affected by this guidance.

Key Information

Core Content

The FCA has issued non-handbook guidance to support the preparation of court documents for FSMA Part VII insurance portfolio transfers. This guidance is intended to help lawyers, actuaries, and other professionals understand the FCA's requirements and ensure that the documents submitted to the High Court meet these standards.

The guidance is not mandatory, but it outlines the areas the FCA considers important and provides examples of good practice. It aims to reduce the likelihood of extensive FCA comments or push-back and improve the chances of waiver approval.

Main Views

• Purpose of Guidance: To assist practitioners in preparing court documents that align with the FCA's statutory objectives, thereby reducing the need for revisions and explanations.
• Impact on Practitioners: The guidance is expected to reduce the time and cost associated with completing portfolio transfers, as it streamlines the process and minimizes FCA-related delays.
• Cost Savings: While the FCA does not have data to quantify savings, it estimates that the guidance may help reduce compliance costs for around 20 transactions per year.
• Third-Party Impact: Advisors and law firms may benefit from the guidance by updating their processes and delivering more efficient services. However, any associated costs are considered indirect and thus not included in the assessment.
• Independent Expert Fees: Typically range between £35,000 and £200,000, with legal and other costs being significantly higher due to the involvement of counsel at hearings.
• Consultation Process: The guidance was developed through a soft-consultation with industry volunteers and was generally well received.

Benefits

• Improved efficiency in the preparation of court documents.
• Reduced revision and explanation work for practitioners.
• Enhanced clarity on FCA expectations, leading to fewer rejections of waiver applications.
• Consistency with current communication practices, ensuring no additional burden on firms.

Costs

• No direct cost increase is anticipated for firms.
• Indirect costs may arise for third parties who need to update their advisory processes, but these are not quantified.

Conclusion

The guidance is designed to simplify the regulatory process for insurance portfolio transfers, improve compliance efficiency, and reduce the burden on practitioners. It aligns with existing practices and is expected to enhance the overall effectiveness of the transfer process without increasing costs. The FCA acknowledges that while the impact assessment is retrospective, the guidance is intended to provide long-term benefits to the industry.