HM Treasury Consultation on Implementing Article 4(4)-4a(1) of the Fifth Motor Insurance Directive
The Fifth Motor Insurance Directive (FMID) was adopted by the Council of the European Union and the European Parliament on 11 May 2005 and came into force on 11 June 2005. Member States have until 11 June 2007 to implement its provisions.
Broadly, Article 4(4) - 4a(1) FMID provides, in circumstances where a vehicle is dispatched from one EEA State to another, a 30-day derogation from the general rule that motor insurance cover can only be provided by an insurer authorised to write business in the Member State in which the vehicle is registered.
HM Treasury has now published a Consultation Document entitled Implementing Article 4(4)-4a(1) of the Fifth Motor Insurance Directive. The Consultation Document seeks views on the Government’s intended approach to implementing one part of the FMID.
The consultation closes on 24 May 2007.
FSA tackles financial crime in the insurance industry
The FSA has published a press notice which calls on insurance firms and intermediaries to inform the FSA when they suspect criminal behaviour, so that the FSA can decide whether to investigate further. The FSA notes that this may arise when an insurer terminates an agency agreement with an intermediary where they see doubtful practice or suspect misconduct. It may also arise where an insurance intermediary has concerns about another intermediary they do business with.
Examples of possible financial crime involving insurance fraud include:
- Misappropriation of client money or money held under risk transfer agreements.
- Failure to pass on premiums, refunds or claims.
- Falsifying customer details to obtain insurance business.
ICAS refreshed: an FSA perspective
In her speech at the Association of British Insurers, Sarah Wilson (Director Retail Firms Division, FSA) discusses Individual Capital Adequacy Standards (ICAS) from an FSA perspective. In her speech Sarah Wilson advises that in the future the FSA will focus on:
- How to meet the need to extend Individual Capital Guidance (ICA) to diversified groups.
- How to add real value to the next round of reviews of ICAs.
- How to improve the combining of the ICA review conclusions, qualitative and quantitative, with the ARROW risk assessment.