Another dodge for Big Finance? Big insurers get key exemption in proposed British audit rules
Workers relax during the lunch hour outside the Bank of England in the City of London August 6, 2013. Reuters/Toby Melville
Britain’s biggest insurers will be exempt from having their most important indicator of financial health externally audited under proposals issued by the Bank of England on Friday.
New European Union rules will require British-based insurance firms from January to meet a minimum solvency capital requirement, or SCR, to show they have enough funds to meet policyholder commitments.
However, the Bank of England’s Prudential Regulation Authority (PRA), in a consultation paper released on Friday, said big firms that use their own models for calculating the SCR would be exempt.
That means firms like Prudential, Aviva and the Lloyd’s of London insurance market, would not need to have their actual SCR audited, only information used to calculate it.
Source: Big insurers get key exemption in proposed British audit rules | Reuters
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I thought Carney was going to clean up the City and make financial institutions more accountable NO LESS!
He has obviously been nobbled.
… In your opinion!
Tweted @melissacade68
The Establishment looks after its own, …yet again.
Legalised Fraud !
Hmmm, not quite got over the Equitable Life scandal and the ineffective/tame response
from Governments who have only just got around to compensating all those that are still alive…..not sure the various Governments have robustly stood by their past vigilence failings. For those old enough also many unhappy lloyd underwriters got burnt in the US asbestos liability saga and lost their entire wealth. Insurers are in the same league as Bankers….Hope Carney has more knowledge about insurance industry than he has of predicting interest rates.