Chapter 7 - Regulatory Processes Systems And Controls Flashcards Preview

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Flashcards in Chapter 7 - Regulatory Processes Systems And Controls Deck (11)
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1

What has Lloyd’s done to obtain info about rules and regs?

Centralised departments in its corporation focused on relations with the UK gov and overseas regulators

Reporting performed centrally by Lloyd’s on behalf of market

Main aspects are
Non life
Solvency
Insurance mediation
Reinsurance
Accounting

2

Data evidence - what are codes used for?

Location of broker
Location of risk
Premium tax
Direct or reinsurance

3

Solvency 2

Better regulation
Deeper integration of EU insurance market
Enhanced p/h protection
Improved competitiveness of EU insurers

4

System and controls

Risks can’t be written by an UW if in contravention of the rules
- training and education
- easily accessible info for staff to check
- operating system controls
- peer reviews
- system reports
- authority limits

5

Sanctions reasons

- political pressure
- enforce concept of respect for democracy
- enforce concept of respect for human rights
- maintain and restore peace

6

Who is responsible for implementing and administration of international financial sanctions in UK

The Office of Financial Sanctions Implementation (OFSI) in HM Treasury

7

Helms-Burton Act 1996

Restricts conduct of business by US entities with or in Cuba

8

Export Control Order 2008

Requires licence obtained if
- movement of arms or military goods between two overseas countries
- involvement of any Uk person

9

Categories of licence

Cat A requires a licence (gallows electric chairs guillotines)

Cat B and C only require licence if insurance obtained for journey to embargoed country

10

Who does GDPR apply to

Controllers - says how and why data processed
Processors - act on controllers behalf

11

Placement
Layering
Integration

Placement - putting cash into the system
Layering - creating a series of complex transactions
Integration - giving impression of legitimate arrangement