Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

30 May 2017

Commercial Risk Europe: EIOPA to issue guidelines to prevent “race to bottom” on regulation


Default: Change to:


The European Insurance and Occupational Pensions Authority is to publish guidelines for national regulators in the EU, to prevent them from undercutting each other in trying to attract companies looking to move from London as a result of Brexit.


Reuters reported that at the recent European Insurance Forum, EIOPA’s head of policy Manuela Zweimuller said: “EIOPA is closely monitoring the developments and will publish in due course its guidance for national authorities on sound principles for authorisation and supervision. We will subsequently closely monitor their implementation.”

Reuters said the risk of such arbitrage has crept onto the radar of politicians and regulators as financial services firms begin to outline plans to move operations to different member states following Britain’s vote last year to leave the EU. It noted that EIOPA’s move follows the European Securities and Markets Authority (ESMA) announcement that it is to publish guidelines for national regulators on this issue before the summer.

The news agency said ESMA was discussing the potential risks of new ‘letterbox’ companies springing up in the EU, delegating key operations to parents in London. ESMA’s chairman warned that countries offering such flexible solutions to attract business could undermine stability, and told a recent conference they want to avoid competition on regulatory and supervisory practices between member states, and a “possible race to the bottom”.

According to Reuters, Ireland’s government has complained to the European Commission that rival centres were “offering a backdoor to the EU’s single market” through lax rules.

Full article on Commercial Risk (subscription required)



© Commercial Risk Europe


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment