On Friday 8 December 2017, the Risk Transformation Regulations 2017 and the Risk Transformation (Tax) Regulations 2017 (the ‘Regulations’) will come in to effect bringing to fruition the Government’s plans to position the UK as a new centre for the use of insurance linked securities.
The Regulations create a new regulatory and tax framework which introduces a new corporate structure for multi-arrangement insurance special purpose vehicles (‘ISPVs’) and a new regulated activity of insurance risk transformation under the Financial Services and Markets Act 2000. The authorisation and supervision of ISPVs will be regulated by the Financial Conduct Authority (‘FCA’) and Prudential Regulation Authority (‘PRA’). New rules in the FCA Handbook and PRA Rulebook will come into force on 8 December.
For details about the background to the Government’s proposals and the structure of the new regime see our blog article ‘ILS – one step closer to creating a London hub‘. Or view our webinar on insurance linked securities featuring speakers from HM Treasury and HM Revenue & Customs.