London launches ILS working group
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The London Market Group (LMG) has claimed that significant progress has been made in negotiations with regulators for the introduction of insurance-linked securities (ILS), with the necessary legislation set to be in place by the end of 2016.
Negotiations started in March 2015, when the UK government unveiled plans to change regulations to allow ILS to be domiciled in the country. The LMG was asked to provide practitioner input to the group to look at proposals to change the UK’s tax and regulatory regimes.
Since then, an ILS task force has been created which gathered expertise from accountants and lawyers. Consultations took place with the Treasury, Her Majesty's Revenue and Customs, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
“We have solved and come up with solutions for the licensing, the taxation, and the authorisation. […] We are going to have legislative changes coming in quarter four this year,” Malcolm Newman, chief executive officer of SCOR’s London and Paris hub, and leader of the LMG work stream, said at an LMG event in the City of London.
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