UK - Far-reaching proposals to improve the governance of life insurance firms have been unveiled by the Financial Services Authority.
The proposals include making directors and senior management of life insurers responsible explicitly for all decisions – including those taken on actuarial advice.
Additional rules that will boost the transparency of with-profits funds – which thousands of pension scheme members use for AVC provision – will also be implemented.
FSA managing director for finance John Tiner said: “These measures will benefit with-profits and other policyholders by making more transparent how discretion in with-profits funds is exercised by boards and senior management.
“Our plans will also bring advantages for life companies by clarifying the responsibilities of boards and senior management, including that actuarial judgements relating to insurance business clearly and unequivocally rest with them.”
The proposals follow an FSA consultation paper – CP167 – and the changes are expected to be implemented by the end of March next year.
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