Notice - Extended Consultation Period for Draft Legislation (2011-08-08)

Summary

This notice extends the public consultation period on two pieces of draft insurance legislation originally issued on June 27th 2011. The extension is intended to ensure the market had adequate notice of the drafts, which the Authority felt had not been fully evident since being posted online.

• Insurance (Prudential Standard) (Class 3A Solvency Requirement) Rules 2011: Would allow Class 3A insurers, subject to conditions, to apply to use internal capital models instead of the standard BSCR SME model, and would require submission of capital and solvency returns by a specified filing date.
• Insurance (Prudential Standard) (Class 4 and 3B Solvency Requirement) Amendment Rule 2011: Would amend filing requirements and clarify annual regulatory reporting provisions for Class 4 and Class 3B insurers, give the Authority power to revoke approval of an internal capital model deemed no longer suitable, and require quarterly financial returns from Class 4 and 3B insurers where BMA has not been appointed group wide supervisor.
• Revised deadline: Interested parties now have until September 30th 2011 to submit comments on both draft rules, available on the BMA website.

This is a consultation notice only; it does not itself impose binding requirements but signals proposed changes to solvency and reporting rules for affected insurers.

Key obligations

• Interested parties wishing to comment on the draft rules must submit their comments to the Authority by the revised deadline of September 30th 2011.

Applies to

Class 3A insurers, Class 3B insurers, Class 4 insurers

Deadlines

• September 30th 2011: Revised deadline for interested parties to submit comments on the draft Insurance (Prudential Standard) rules.