Risk swapping between listed companies, banks, insurance firms and reinsurance groups can hold incre...
Risk swapping between listed companies, banks, insurance firms and reinsurance groups can hold increadible risk for investors out of their depth, but the market so far has shown that participants are sufficiently clued up to avoid another layer of regulatory control.
That is the gist of today's discussion paper released by the FSA, which says its review of the industry shows that UK insurance companies are not endangered by exposure to the cross-sector risk transfers part of the credit derivatives market, which globally is worth $1.5 trillion annually.
The paper is calling for comments by the end of July, although in the meantime the FSA intends to coordinate discussions with overseas regulators, continue to monitor risk transfers, and consult on new reporting requirements applied to cross-sector risk transfers as part of the report on regulatory reporting due for publication next month.
Lowest level since 2016
Subset of fintech
Just one-fifth not in favour
Armed forces charity
PI providers adding constraints to cover