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There was some concern that the regulations would be delayed because of the result of the recent General Election, but the government has moved quickly to reassure the market. “By publishing these regulations today, the UK government is giving the insurance and reinsurance industry greater certainty in how the new regime will work– enabling them to be on the front foot in preparing for the new rules when they come into force in autumn,” said the government.
The regulations will be laid before parliament after the summer recess, and will come into force in the autumn. They set out how to establish special vehicles to issue ILS, the legal framework for ILS, and the associated tax treatment. The regulations also provide for a tailored and proportionate approach to authorisation and supervision, the government said.
The UK government has published a document that sets out the government’s response to the November 2016 consultation on draft ILS regulations and the final approach to the tax and regulation of ILS vehicles in the UK. It contains information on the responses received and further information on:
The regulations are subject to their passage through parliament.
Malcolm Newman, chairman of the London Market Group’s ILS Taskforce, said: “The new ILS framework offers a very exciting future for the London market to continue to deliver innovative new products that make a real difference. We believe there is a real appetite in the London market to invest in ILS products, which will bring investors to the UK and make a significant contribution to growing the UK’s trade.”
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