Ironshore’s Pembroke Managing Agency has enhanced its directors and officers liability product for financial institutions to reflect changes to UK regulations.
A new regulation, known as the senior managers regime, places greater personal accountability on senior managers of UK financial institutions, effective as of March 7, 2016.
Pembroke Lloyd’s Syndicate 4000 has broadened liability coverage offered through its financial institutions division to protect individuals that perform senior management functions.
The Financial Services & Markets Act has been amended to empower regulators to determine what responsibilities are deemed to be senior management functions. The intent is to establish clear guidelines regarding allocation of senior management business obligations for enforcement of individual accountability with regard to institutional actions.
A senior management function is defined as a role in which the person is required to manage one or more aspects of the institution’s business affairs that could potentially result in severe consequences for the firm, its business operations or other third-party interests within the UK.
Initially, the new regime will apply to UK banks, building societies, credit unions and Prudential Regulatory Authority investment firms.
Chris Brown, global industry practice leader, financial institutions, said: “The Financial Institutions regulatory framework continues to evolve with greater emphasis on personal accountability of senior managers.
“Pembroke’s D&O policy has been updated to address regulatory changes, thereby assuring broader protection for those individuals subject to closer scrutiny in performing senior management functions.”
Ironshore, Pembroke Managing Agency, Pembroke Lloyd’s Syndicate 4000, D&O insurance, Chris Brown, Bermuda, London, UK