Central Bank Update Dec 2014

Author:Ms Sharon Daly and Darren Maher

Consultation on National Specific Templates for Insurers and Reinsurers under Solvency II - CP 89

On 6 November 2014, the Central Bank published a consultation paper on National Specific Templates for Insurers and Reinsurers under Solvency II. The paper sets out the Central Bank's proposals relating to reporting templates which it deems necessary to address requirements specific to the local market and / or the nature of insurance undertakings supervised in Ireland which are not catered for in the set of Solvency II harmonised reporting templates developed by EIOPA.

Submissions are welcomed from interested stakeholders before 9 January 2015.

To view the consultation documents, please click here.

Intermediary Times

The Central Bank of Ireland has published the latest edition of the Intermediary Times which reports on a number of developments, including the following:

(1) Handbook of Prudential Requirements for Investment Intermediaries

The new Handbook replaces the 2006 Handbook of Prudential Requirements for Authorised Advisors and Restricted Intermediaries.

All retail investment intermediaries are required to comply with the Handbook as a condition of their authorisation. Some of the main changes introduced in the Handbook include the following:

Multi-agency intermediaries and authorised advisors will now be defined as "investment intermediaries" An investment intermediary must at all times be in a position to meet its financial obligations in full as they fall due Goodwill and other intangible assets are to be excluded from the calculation of a firm's balance sheet assets for regulatory reporting purposes The requirement to hold professional indemnity insurance has been imposed directly on investment intermediaries, mirroring the requirement for insurance intermediaries set out under the Insurance Mediation Regulations, 2005 An investment intermediary must notify the Central Bank in advance where it proposes to outsource any important operational function The changes took effect from 1 October 2014 and investment intermediaries and the management thereof are reminded that failure to comply with a requirement imposed under a statutory provision may result in the imposition of an administrative sanction or revocation of a firm's authorisation under the IIA.

(2) Amendment of Professional Indemnity Insurance Levels

Requirement 4.2 of the Handbook requires an investment intermediary to provide cover for1.25 million per claim and1.85...

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