New York State Insurance Superintendent Eric Dinallo and Hector Sants, chief executive officer of the United Kingdom Financial Services Authority – the United Kingdom’s insurance regulator – have signed a memorandum of understanding that established a formal basis for consultation, cooperation and coordination between the agencies.
The agreement provides for the exchange of information relevant to each authority’s supervisory, regulatory and examination responsibilities. The agreement is similar to other arrangements signed over the last year between New York’s top insurance regulators and counterparts in Germany, Taiwan and Bermuda.
“The increasingly global financial markets require that regulators communicate quickly and cooperate closely in order to operate effectively,” Dinallo said. “London and New York are recognized as being the world’s leading financial centers. The world watches what we do, and this arrangement emphasizes our awareness of our responsibilities to the global insurance market. The FSA and the Department have demonstrated, most recently through our work on monolines and during the current financial crisis, that international cooperation is essential to protect policyholders and provide the security that is fundamental to the industry’s success.”
Under the agreement, either regulator may request assistance from the other, including obtaining information on a regulated person or entity. Either regulator may provide the other with investigative assistance with respect to companies and persons engaged in the business of insurance, including questioning or taking testimony and conducting inspections and investigations.
The agreement also commits the United Kingdom and New York regulators to cooperating with each other in the interest of fulfilling their respective regulatory mandates and functions.
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