The latest draft regulations for an insurance linked security regime in London will go before Cabinet Minsters before being presented to Parliament.
Speaking at the Reactions London Market Re/insurance conference, Michael Wade, senior advisor to the UK Cabinet Office said this would be the next stage before draft proposals were presented to parliament.
“The technical position is that the cabinet needs to say ‘yes we agree’, and then the draft rules and regulations will go before parliament,” he said.
Wade said he believed concerns about the proposals raised by members of the ILS industry would be resolved by the latest iterations of the regulations.
“I think that most of the concerns of the industry have been addressed in the latest draft of the proposed new ILS regulations,” said Wade.
“Therefore I anticipate that by 2018 transactions will be able to take place in London, which would be transformational for the market in the city,” he added.
Initial drafts of proposals from The Treasury and the Prudential Regulation Authority were dismissed as “unworkable” earlier this year, as reinsurers raised concerns over the ability of the new regime to compete with jurisdictions such as Bermuda and the Cayman Islands.
A proposed 10-day notification period for the creation of sub-cell company structures and a six month approval period to establish new insurance special purpose vehicles were widely considered to be uncompetitive.
“I am confident we will get to the point where those on the professional side of the ILS market will be where they need to be when it comes to timing,” Wade added.
News source: Reactions