The assets recovery agency

The assets recovery agency

 The Proceeds of Crime Act set up the Assets Recovery Agency (APR) to confiscate the proceeds of crime from criminals.   The ARA can obtain court orders empowering them to sell assets, to obtain financial information, or to require trustees or managers of a pension scheme to pay them the pension rights.

The ARA can also take over the inlands revenues function to tax profits or gains of criminal conduct.

European Legislation

There have been a number of European directives that have impacted on the financial services industry. Here are a few.

The first life insurance directive

Aims to provide a frame work where a life insurer in one EU state can set up a branch, subsidiary or agency in another EU state subject only to the conditions as are imposed by the host country on it sown life insurance companies.

The Directive makes the carrying on of life insurance subject to some common authorisation requirements which where implemented by the Insurance Companies Regulations 1981 and the Insurance Companies Act 1982 both of which have been superseded by the FSA Prudential Sourcebook.

It also stops new composite insurance companies being set up to do both life business and non life business.

Insurance mediation directive

Requires member states to regulate insurance intermediaries by maintaining a register of authorised firms. The intermediaries must meet certain requirements such as experience, training and professional indemnity cover.   Once an intermediary has been registered in one state then there are certain allowances letting them pass-port in and set up in another member state.

Insurance account directive

All insurance company accounts are to give a true and fair view of their assets, liabilities, financial position and profit and loss.

The third life directive

The EU Third Life directive was incorporated into the UK law by the Insurance Companies (Third Insurance Directives) Regulations 1994.   Provides that an insurance company authorised in one member state does not need authorisation to write business in another member's state.

Under the FSMA 2000 non UK life insurance offices do not require separate authorisation to write business in the UK so long as they are authorised in another member state. The FSA can however review their sales and advertisement and take measures to stop them if they consider that this is in the public interest.

All EU life offices must have sound and prudent management, sound administrative and accounting arrangements and adequate internal controls.

The hone EU state will supervise the life insurance office.   No member state can prohibit a company set up in another state from writing business.

Member states can not make it a requirement that they agree policy wordings nor premiums scales first.  

Assets relating to EU business must be kept in an EU state.

Any UK life insurer writing business in another member state must advise the FSA and provide separate statistics.