FSA sets up insurance crisis team
Daily news headlines
LONDON – According to newspaper reports, UK regulator the Financial Services Authority (FSA) has appointed an external team of lawyers to deal with crises it expects in the insurance sector.
Although the Bank of England stated this week that the insurance sector is stable and does not share banks’ liquidity problems, it noted some firms could be forced to sell assets due to credit rating downgrades or falling solvency levels.
The FSA is, along with government departments, looking at ways to potentially deter forced equity selling by insurance firms should the insurance sector be further threatened by falls in the price of equities and corporate bonds. It wants to avoid forced sales of equities into an already severely depressed market and could look again at relaxing rules on the amount of capital requirements for insurers or suspend mark-to-market accounting.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Structured products
Regulation
FCA proposes using CME’s term SOFR for synthetic US Libor
IBA agrees to use rival’s ARRC-endorsed benchmark to avoid bifurcating the market
Receive this by email