Zurich

1
A General Insurers experience of an FSA
Compliance Audit Insurance Institute of
London 12th January 2004
Simon Jenvey Prudential Compliance Manager Zurich
Financial Services - UK General Business
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Content

• FSA Regulation - The Story So Far
• Visit Purpose
• Visit timetable
• Documentation Packs
• Insider information
• Hot topics
• Take away points

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The FSAs Objectives the Principles of Good
Regulation
Maintaining the UKs international competitive
position
Most efficient and economic use of resources
maintain confidence in the UK financial system
secure the appropriate degree of protection
for consumers
Being proportionate
promote public understanding of the
financial system
Competition
reduce the scope for financial crime
Responsibility of firms own management
Facilitating innovation
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FSA regulation - the story so far
2001
2002
2003
2004
2005
2006
The Interim Prudential Regime
N2 31 Dec 2001
FSA ARROW Visit Oct 2002
FSA Risk Mitigation Plans
The Integrated Prudential Regime
Project Mainwaring Implementing the
Integrated Prudential Regime
General Insurance Conduct of Business Regulation
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Visit Purpose

• ARROW
• Risk Mitigation Plan
• Thematic/Project
• Discovery/Familiarisation
• Consultative

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Visit Timetable

• FSA Visit Request
• Senior Management Briefing
• Mock Interviews
• Mock Interview Feedback
• FSA arrive

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Documentation Packs

• Organisation Charts
• Financial Reports
• Committee Details
• Material Intra-group transactions
• IT strategy
• Key Risk/Control Indicators
• Quarterly Financial Report Pack
• Product distribution details
• Market Share information

• Financial projections and capital planning
• Key financial indicators by business unit
• Product/geographical diversification
• Top 5 business unit risks
• Top 20 Customer relationships
• Non-life Reinsurance ceded
• Investments
• Outsourcing
• Delegated Authorities

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Insider Information

• Know your supervisor
• The Risk Assessment Approach
• Updates from Compliance
• Lessons from consultants and peer groups
• Co-ordinate contact with the FSA

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FSA Hot Topics

• Control/Risk Process - including
  escalation/timely resolution
• Governance structures/processes.
• Management information - recipients/actions
• Documentation - if not, does not exist

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Take Away Points

• Understand the purpose of the visit
• Know your supervisor
• Documentation Packs
• Provide support for interviewees
• Anticipate themes
• See the visit as an opportunity

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An Insurers experience of an FSA Compliance
Audit Insurance Institute of London 12th
January 2004
Simon Jenvey Prudential Compliance Manager Zurich
Financial Services - UK General Business