Ironshore’s Pembroke Managing Agency Ltd. has enhanced its directors & officers liability product for financial institutions to reflect U.K. regulation.
The new regulation, known as the “Senior Managers Regime,” places greater personal accountability on senior managers of U.K. financial institutions, effective March 7, 2016.
Pembroke Lloyd’s Syndicate 4000 has broadened liability coverage offered through its financial institutions division to protect individuals that perform “Senior Management Functions.”
The Financial Services & Markets Act (FSMA) has been amended to empower regulators to determine what responsibilities are deemed to be senior management functions, the company said in a statement.
The intent of FSMA is to establish clear guidelines regarding allocation of senior management business obligations for enforcement of individual accountability with regard to institutional actions.
“A senior management function is defined as a role in which the person is required to manage one or more aspects of the institution’s business affairs that could potentially result in severe consequences for the firm, its business operations or other third-party interests within the U.K.,” Ironshore explained.
Initially, the new regime will apply to U.K. banks, building societies, credit unions and Prudential Regulatory Authority investment firms, the company added.
“The financial institutions regulatory framework continues to evolve with greater emphasis on personal accountability of senior managers,” stated Chris Brown, Global Industry Practice leader, Financial Institutions. “Pembroke’s D&O policy has been updated to address regulatory changes, thereby assuring broader protection for those individuals subject to closer scrutiny in performing senior management functions.”
Ironshore’s Financial Institutions Industry Practice Group provides specialist and comprehensive insurance solutions for all sectors of the financial institutions industry including banks, asset or fund managers, investment funds/vehicles, private equity or venture capital firms, financial exchanges and insurance companies.
Source: Ironshore
Topics Legislation Uk
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