BoE: ‘No interest’ in lowering capital requirements for insurers post-Brexit
The review into Britain’s financial rules post-Brexit will not lead to any “radical departure” or a reduction in capital requirements, the Bank of England (BoE) said today.
Brexit has prompted the government to look at insurance capital rules inherited from the EU, with hopes it could lead to fewer requirements.
The bank’s Deputy Governor Sam Woods, who also leads the BoE’s Prudential Regulation Authority, today indicated that would not be the case and there would be a “shift towards more rule-making by the regulator.”
“Now that we have left the EU we have no interest whatsoever in lowering levels of resilience or policyholder protection, but we can and should make changes to tailor regulation so it fits our market better and is more efficient and coherent,” he said in a speech to the Association of British Insurers (ABI).
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