Regulatory reform will place yet more responsibility on senior management

By James Bateson

AN important feature of the UK’s new regime for insurance companies, introduced pursuant to the Financial Services and Markets Act 2000, is the responsibility placed on senior management for compliance with its rules. One area where this is fundamental is in relation to a firm’s solvency. Not only is the onus placed upon senior individuals to maintain compliance with solvency requirements, but they are subject to personal sanctions if the required standards are not met.