2 July 2015
LMA publishes guidance on Senior Insurance Managers Regime
The Lloyd’s Market Association (LMA) has issued new guidance to Lloyd’s managing agents on the proposed Senior Insurance Managers Regime (SIMR) developed by the UK’s two financial services regulators. The LMA’s paper provides a summary of the new regulations and their implications for the Lloyd’s market. This is available from the LMA website: www.lmalloyds.com/SIMR
Developed jointly by the Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA), the SIMR will come into force on 1 January 2016, replacing the current Approved Persons Regime.
The proposed SIMR is a complex framework which, according to the LMA, is markedly different to the current regime. The new framework will affect all Board members and also senior managers and other employees in what the regulators refer to as ‘key’ functions, such as those responsible for internal audit and risk management.
Steve Morrell, LMA senior executive for UK and international regulations, said: “The LMA has reviewed the current consultations and this initial guidance is designed to provide a simplified explanation of the rules and also practical tips for implementation.”
“Many of the new rules will not be finalised until the regulators publish their final joint policy statement in late July-early August. However, this guidance represents our best view of the proposals as they stand currently. Managing agents will need to assess the final rules in the context of their own organisations and structures when they are published.”
Regulators committed to reforming the Approved Persons Regime as part of the Financial Services (Banking Reform) Act 2013. The regime governs the conduct of senior individuals who effectively run a financial services business or have responsibility for important or critical areas of the business. The changes are also intended to address a range of governance and fitness/propriety requirements under the new Solvency II Directive.
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Notes to Editors
For further information please contact:
James Milne, Communications Manager
Lloyd’s Market Association
T 0207 327 8405
T 020 7623 2368
About the Lloyd’s Market Association (LMA)
Formed in 2001 and located in the heart of the Lloyd’s Building in the City of London, the Lloyd's Market Association represents the interests of the Lloyd’s underwriting community. All underwriting businesses at Lloyd’s are members, together managing gross premium income of around £26 billion per annum.
For more information visit: www.lmalloyds.com