Insurers should audit staff using free movement of citizens regime
UK-based insurers will need to urgently conduct an audit of their staff and assess how many might be utilising the free movement of citizens regime, one lawyer has warned following the news that the UK is to exit the European Union.
Andrew Holderness, global head of corporate insurance at Clyde & Co, said companies will then need to assess whether they can remain in those positions following the vote.
“Alongside the greater administrative burden, there may well be increased employment costs,” he said. “It is important to align this work very closely with decisions on possible structures, so that any changes to the organisation designed to secure ongoing access to markets take into account how that might affect the location of senior management and other staff.”
He also said that he believes the burden of regulation on insurers will inevitably rise as a result of the vote.
“Without passporting, the level of regulation will undoubtedly rise. It is also very likely that the overall demands on the regulators themselves will increase significantly. This will then have knock on effect and could impact their speed of response to a range of issues such as requests for approvals and rule waivers or modifications,” he said.
