Chapter 7 - Regulatory Processes Systems And Controls Flashcards
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
Data evidence - what are codes used for?
Location of broker
Location of risk
Premium tax
Direct or reinsurance
Solvency 2
Better regulation
Deeper integration of EU insurance market
Enhanced p/h protection
Improved competitiveness of EU insurers
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
Sanctions reasons
- political pressure
- enforce concept of respect for democracy
- enforce concept of respect for human rights
- maintain and restore peace
Who is responsible for implementing and administration of international financial sanctions in UK
The Office of Financial Sanctions Implementation (OFSI) in HM Treasury
Helms-Burton Act 1996
Restricts conduct of business by US entities with or in Cuba
Export Control Order 2008
Requires licence obtained if
- movement of arms or military goods between two overseas countries
- involvement of any Uk person
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
Who does GDPR apply to
Controllers - says how and why data processed
Processors - act on controllers behalf
Placement
Layering
Integration
Placement - putting cash into the system
Layering - creating a series of complex transactions
Integration - giving impression of legitimate arrangement
