The UK is pressing ahead with plans to create a resolution regime to deal with the failure of big insurance companies, saying the “swift and decisive” action to rescue Silicon Valley Bank’s UK arm in March underlined the importance of such arrangements.
The government said on Wednesday that it would legislate “when parliamentary time allows” to give the Bank of England new powers and flexibility to manage the demise of a large insurer, mirroring the resolution regime for banks, which was established in 2009.
Following a public consultation on the government’s plans, the Treasury said the insurance regime would provide the central bank with “powers to take prompt action to stabilise and manage an insurer that is failing or likely to fail, subject to appropriate safeguards”.
Read the full story on the Financial Times here.