The London Market Group (LMG) welcomed today's publication by the UK Government of draft regulations for Insurance-Linked Securities (ILS) for consultation. These include tax and non-tax regulations, as well as a supervisory statement from the Prudential Regulatory Authority and Financial Conduct Authority.
Malcolm Newman, sponsor of the LMG workstream focused on building a better business environment, commented: "We are delighted that the process has reached this stage and we warmly welcome these draft regulations – which have been developed with the full input of our task force. By facilitating the entry of the UK into the dynamic ILS market, the government is giving very positive support to the London Market's growth agenda - an agenda given renewed vigour by Brexit.
"There will undoubtedly be debate and discussion over some issues but we look forward to a constructive dialogue with government and the regulators to refine the proposals so that ILS business can be conducted onshore in the UK in 2017. Once we have the legislation in place, we can start the vital of work of attracting business. We want to use our strengths and our ability to innovate to create new products and grow the overall re/insurance market."