BusinessBusiness RecoveryFSA set to change insolvency rules for insurers

FSA set to change insolvency rules for insurers

Rules governing reserves to change

Britain’s biggest insurance companies should be able to free up capital tied
up in reserves to fund growth in other areas, an FSA document to be released
this week will say.

The consultation document is set to recommend overhauling regulations which
many believe impose excessive targets for capital and reserves and will be
included in European Union regulations, by member states by 2010.

The new rules are expected to prevent a repeat of events in 2003 when the FSA
forced Standard Life to sell £7bn of equities following a collapse in stock
market values.

At the same time insurers are expected to adopt more sophisticated
risk-management methods.

Rules dating back to the 1970s currently force insurance groups to keep more
funds in their reserves than rival investment management firms.

Related Articles

Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

1d Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

1m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

1m Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

2m Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

6m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

7m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

9m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

10m Emma Smith, Managing Editor