HM Treasury has outlined the responses received to the consultation on the proposed insurer resolution regime (IRR) in the UK, as well as the government’s response to issues raised by stakeholders.
According to HM Treasury, 13 written responses were received, along with verbal responses that were gathered during engagement sessions ran by the government earlier this year. These relate to plans to introduce a bespoke resolution regime for insurers, the goal of which is to minimise disruption to policyholders while protecting the wider economy and enhancing British financial stability.
“Overall, respondents were supportive of the proposed introduction of the UK resolution regime for insurers and were broadly in agreement with the proposed framework, noting support for the introduction of a regime aligned to international standards and guidance,” noted HM Treasury, which said the government intends to legislate when Parliamentary time allows and will continue to engage with relevant parties.
“Comments were made in relation to the legal scope of the regime, how the proposed powers would apply in practice, and how the regime would interact with the existing insolvency architecture. Comments were also made on the time needed to implement the new regime, and the potential for various costs to be incurred by industry when implementing the IRR proposals.”
Additionally, based on the submissions, respondents want a proportionate approach to be pursued.
A summary of the responses can be accessed here.
Meanwhile, HM Treasury said: “The government has carefully considered all the responses to the IRR consultation and has engaged with several respondents to further discuss certain points.
“The points [cited in the government’s response] reflect where changes have been made to the government’s proposed approach in order to take account of the points raised, to reflect further policy development, and, for certain suggestions, to provide an explanation as to why the government has decided that no policy changes should be made.”
In terms of timing, HM Treasury offered assurances that sufficient time and notice will be given, allowing industry to make any necessary changes to accommodate the new powers the Bank of England will have in its capacity as resolution authority.
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