Edition Highlights:

  • The European Commission has published guidelines with regards to the processing of personal data.
  • The European Commission has adopted packaged retail investment and insurance-based products regulation by laying down regulatory technical standards with regards to the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents.
  • Her Majesty’s (HM) Treasury announced regulatory innovation plan for the country’s top financial services regulators.

Current coverage period: Through April 30, 2017

Note: Anticipated business impact for covered regulations is shown using the following rating legend:       (*Low) (** Medium) (*** High)

CURRENT REGULATIONS: 

Insurance Europe (IE) (*):

Comment on announcement on changes to Solvency II UFR methodology
Publication Date: April 5th 2017

Regulation Type: Response to Consultation

Category: Accounting

Olav Jones, Deputy director general of Insurance Europe, commented on the European Insurance and Occupational Pensions Authority’s announcement of plans to make changes to the Solvency II ultimate forward rate (UFR) from January 1, 2018. He points out that Solvency II has several safeguards, including a requirement that insurers are to assume that current low interest rates will remain for the next 20 years, and thus no need to make hasty changes to the UFR.1

 

Prudential Regulation Authority (PRA) (***):

Solvency II: Supervisory disclosures, the PRA’s supervisory approach and insurance regulations applicable in the United Kingdom
Publication Date: May 1st 2017

Regulation Type: Report

Category: Prudential
The agency has announced the publication of supervisory disclosures in line with its obligations under Article 31(2) of the Solvency II Directive, including: Aggregate statistical data on key aspects of the application of the prudential framework; a table covering the exercise of the options provided for in the Solvency II Directive; links to the insurance regulation texts applicable in the United Kingdom; and links to the PRA’s supervisory approach.
2

 

Prudential Regulation Authority (PRA) (**):

Maintenance of the ‘transitional measure on technical provisions’ under Solvency II – SS6/16 UPDATE
Publication Date: April 28th 2017

Regulation Type: Final Rule

Category: Prudential
The regulator has updated this Supervisory Statement following the publication of Policy Statement (PS) 11/17 “Maintenance of the ‘transitional measure on technical provisions’ under Solvency II.” The changes include a new Chapter 2A that sets out the PRA’s expectations that firms should analyze the material components and drivers of transitional measure on technical provisions (TMTPs) relief and a new Chapter 3 setting out the PRA’s expectations on how firms should keep Solvency I and Solvency II valuation bases consistent.3

 

European Insurance and Occupational  Pensions Authority (EIOPA) (***):
EIOPA proposes amendments to the adopted Solvency II Technical Standards on Reporting and Disclosure
Publication Date: April 21st 2017

Regulation Type: News

Category: Prudential
The EIOPA has identified some required amendments to the Implementing Technical Standards on the templates for the submission of information to the supervisory authorities (ITS on Reporting) and in the Implementing Technical Standards with regard to the procedures, formats and templates of the solvency and financial condition report (ITS on Disclosure).4

 

Financial Conduct Authority (FCA) (**):
Andrew Bailey speech at press conference for the publication of FCA corporate documents
Publication Date: April 18th 2017
Regulation Type: Speeches

Category: Compliance
FCA Chief Executive, Andrew Bailey delivered remarks on the FCA’s publication of five corporate documents: its Mission, Sector views, Business plan 2017/18, Annual consultation on fees, and Feedback statement to its Mission consultation. Taken together, these represent a milestone in its role, as well as presenting the regulator’s fiscal plans and priorities for the period ahead.
5

 

European Commission (EC) (***):
Guidelines on Data Protection Officers (‘DPOs’)
Publication Date: April 5th 2017

Regulation Type: Report

Category: Compliance
Article 29, Data Protection Working Party presents revised guidelines concerning Data Protection Officers (“DPOs”). Under the General Data Protection Regulation, it is mandatory for certain controllers and processors to designate a DPO. The guidelines outline the procedure for the designation of a DPO and provide information on their position and tasks. The latest revision is adopted and effective April 5, 2017.6

 

Financial Conduct Authority (FCA) (**):

Our Mission 2017
Publication Date: April 18th 2017
Regulation Type: Report

Category: Compliance
The FCA has published its 2017 Mission. The agency will seek to regulate in a way that adds the most benefit to users of financial services. The Mission document explains what the FCA’s priorities will be and why, and describes the framework it uses to make its decisions, the reasoning behind the FCA’s work and how it chooses the best tools for the job.
7

 

European Commission (EC) (***):
European Parliament and of the Council on key information documents for packaged retail and insurance-based investment products (PRIIPs)
Publication Date: April 12th 2017
Regulation Type: Final Rule

Category: Compliance
The agency has adopted Commission Delegated Regulation (EU) 2017/653 of March 8, 2017 supplementing Regulation (EU) No 1286/2014 of the European Parliament and of the Council on key information documents for packaged retail and insurance-based investment products (PRIIPs) by laying down regulatory technical standards with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents. This regulation comes into force on May 4, 2017.8

 

Central Bank of Ireland (CBI) (*):
Financial Regulation in a Time of Uncertainty – Gerry Cross
Publication Date: April 28th 2017
Regulation Type: Speeches

Category: Others
The agency has published a speech made by Gerry Cross, Director of Policy & Risk at the Central Bank of Ireland regarding financial regulation in a time of uncertainty. His speech touched on a broad range of topics including: the objectives of financial regulation; financial stability; regulating a well-functioning financial system; the soundness of individual firms; effective functioning of the financial system; consumer protection; enforcement; Brexit; transition; and the role of the European authorities.
9

 

Financial Conduct Authority (FCA) (**):

The FCA’s regional FinTech engagement
Publication Date: April 26th 2017
Regulation Type: Speeches
Category: Others
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, delivered a speech on the regulator’s approach to using innovation to tackle regulatory barriers and allowing firms to innovate in the interest of consumers.10

 

Financial Conduct Authority (FCA) (***):
“Expect the unexpected” – cyber security – 2017 and beyond
Publication Date: April 24th 2017
Regulation Type: Speeches

Category: Other
Nausicaa Delfas, Executive Director at the FCA said that the threat landscape with respect to cyber security is always evolving and there has been a rise in the risk of targeted network attacks being carried out against firms.
11

 

Financial Conduct Authority (FCA) (*):
Innovating for the future: The next phase of Project Innovate
Publication Date: April 10th 2017
Regulation Type: Speeches

Category: Others
The regulator has released a speech by FCA Executive Director of Strategy and Competition, Christopher Woolard titled “Innovating for the future: the next phase of Project Innovate.” The speech touches on the regulatory barriers Project Innovate aims to tackle and the prospect of increased engagement with regional FinTech (financial technology) hubs.
12

 

HM Treasury  (HMT) (**):
HM Treasury – Regulatory Innovation Plan
Publication Date: April 4th 2017
Regulation Type: Report

Category: Others
The innovation plan covers a number of actions financial services regulators are undertaking to create a more supportive regulatory and enforcement framework for new business models and disruptive technologies while breaking down barriers to entry and boosting productivity in financial services.
13

 

Bank of England (BoE) (*):
Speech by Mark Carney, Governor of the BoE
Publication Date: April 12th 2017
Regulation Type: Speeches

Category: Others
Mark Carney, Governor of the Bank of England gave a speech on “Building the Infrastructure to Realise Fintech’s Promise.”
14

 

European Parliament (EP) (***):
ECON adopts report on FinTech
Publication Date: April 25th 2017
Regulation Type: Report

Category: Others
Economic and monetary affairs committee MEPs want the European Union to accelerate the development of financial services enabled by new technologies (FinTech). The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has adopted a report on FinTech and the influence of technology on the future of the financial sector.
15

 

Visit www.accenture.com/RegulatoryCompliance for latest insights on regulatory remediation and compliance transformation.

 

References:

1.     “Comment on announcement on changes to Solvency II UFR methodology,” Insurance Europe, April 5, 2017. Access at: Comment on announcement on changes to Solvency II UFR methodology

2.    “Solvency II: Supervisory disclosures, the PRA’s supervisory approach and insurance regulations applicable in the United Kingdom,” Prudential Regulation Authority (PRA), May 1, 2017. Access at: Solvency II: Supervisory disclosures, the PRA’s supervisory approach and insurance regulations applicable in the United Kingdom

3.    “Maintenance of the ‘transitional measure on technical provisions’ under Solvency II – PS11/17,” Prudential Regulation Authority, April 28, 2017. Access at: Maintenance of the ‘transitional measure on technical provisions’ under Solvency II – SS6/16 UPDATE

4.    “EIOPA proposes amendments to the adopted Solvency II Technical Standards on Reporting and Disclosure,” European Insurance and Occupational Pensions Authority, April 21, 2017. Access at: EIOPA proposes amendments to the adopted Solvency II Technical Standards on Reporting and Disclosure

 5.    “Andrew Bailey speech at press conference for the publication of FCA corporate documents,” Financial Conduct Authority, April 18, 2017. Access at: Andrew Bailey speech at press conference for the publication of FCA corporate documents

6.    “Article 29 Data Protection Working Party – Guidelines on Data Protection Officers (‘DPOs’),” European Commission, April 5, 2017. Access at:Guidelines on Data Protection Officers (‘DPOs’)

7.    “Our Mission 2017 – How we regulate financial services,” Financial Conduct Authority, April 18, 2017. Access at: Our Mission 2017

8.    “Commission Delegated Regulation (EU) 2017/653 of 8 March 2017 supplementing Regulation (EU) No 1286/2014 of the European Parliament and of the Council on key information documents for packaged retail and insurance-based investment products (PRIIPs),”Official Journal of the European Union, April 12, 2017. Access at: Public consultation on FinTech: a more competitive and innovative European financial sector

9.    “Financial Regulation in a Time of Uncertainty – Gerry Cross, Director of Policy & Risk,” speech by Gerry Cross, Central Bank of Ireland, April 28, 2017. Access at: Financial Regulation in a Time of Uncertainty – Gerry Cross

 10. “The FCA’s regional FinTech engagement,” speech by Christopher Woolard, Financial Conduct Authority, April 26, 2017. Access at:The FCA’s regional FinTech engagement

11.   “Expect the unexpected, cyber security – 2017 and beyond,” speech by Nausicaa Delfas, Financial Conduct Authority, April 24, 2017. Access at: “Expect the unexpected” – cyber security – 2017 and beyond

12.  “Innovating for the future: the next phase of Project Innovate,” speech by Christopher Woolard, Financial Conduct Authority, April 10, 2017. Access at: Innovating for the future: The next phase of Project Innovate

13.  “Regulatory Innovation Plan,” HM Treasury, April 4, 2017. Access at: HM Treasury – Regulatory Innovation Plan

14.  “Building the Infrastructure to Realise FinTech’s Promise,” speech by Mark Carney, Bank of England, April 12, 2017. Access at: Speech by Mark Carney, Governor of the BoE

15.  “EU needs to accelerate FinTech development,” European Parliament, April 25, 2017. Access at: ECON adopts report on FinTech

About the Insurance Monthly Regulatory Tracker

The “Insurance Regulatory Insights” newsletter is the monthly initiative aimed at updating the Finance and Risk community with the most recent regulatory changes impacting insurance firms. We update our comprehensive regulatory database every month by tracking more than 40 regulatory and industry bodies covering North America, Europe and Asia Pacific. Every month, we will highlight approximately 10 regulations shortlisted on the basis of geography of coverage and anticipated business impacts. Our summaries highlight the Regulation Type and business processes affected by the regulatory reforms. This newsletter is planned to supplement the existing newsletter “Regulatory Insights” which provides a deeper analysis of business implications and Accenture’s point of view on a single or much smaller set of regulatory changes.

Disclaimer

This blog is intended for general informational purposes only, does not take into account the reader’s specific circumstances, may not reflect the most current developments, and is not intended to provide advice on specific circumstances. Accenture disclaims, to the fullest extent permitted by applicable law, all liability for the accuracy and completeness of the information in this blog and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professional.

About Accenture:

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