Treasury consults on Reinsurance Directive

The Treasury said it “intends to take a proportionate and risk-based approach to implementing the provisions” of the Reinsurance Directive, adding that it is proposing to introduce a “Part VII-lite” in its application of reinsurance transfer rules, which allows reinsurers to transfer business to another legal entity. “Although some current exemptions from Part VII FSMA for transfers of reinsurance business cannot be maintained in their entirety, it is not proposed to apply the full Part VII Court approval process in all cases”.