Consultation outcome

Regulations implementing a new regulatory and tax framework for Insurance Linked Securities

From:
HM Treasury
Published
23 November 2016
Last updated
12 October 2017 — See all updates
This consultation has concluded

Download the full outcome

Regulations implementing a new regulatory and tax framework for insurance linked securities: response to the consultation

PDF, 321 KB, 27 pages

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The Risk Transformation Regulations 2017 (October 2017 version)

PDF, 1.05 MB, 100 pages

The Risk Transformation (Tax) Regulations 2017 (October 2017 version)

PDF, 162 KB, 4 pages

The Risk Transformation Regulations 2017 (July 2017 version)

PDF, 1.4 MB, 99 pages

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The Risk Transformation (Tax) Regulations 2017 (July 2017 version)

PDF, 151 KB, 4 pages

Detail of outcome

To help cement the UK’s position at the forefront of the global reinsurance business, the government is publishing a new regulatory and tax framework for Insurance Linked Securities business in the UK. Insurance Linked Securities enable insurers to transfer large and complex risks to capital market investors. A UK regime will help to strengthen the sector’s contribution to the UK economy.

This document sets out the government’s response to the November 2016 consultation on draft ILS regulations and sets out the final approach to the tax and regulation of ILS vehicles in the UK. It contains information on the responses received and further information on:

  • the corporate structure for multi-arrangement ILS vehicles to be used in the UK
  • the tax treatment for ILS vehicles and their investors
  • the approach to authorisation and supervision of ILS vehicles by the PRA and FCA

These regulations are now final subject to their passage through parliament.

Original consultation

Summary

Seeking views on the government’s proposed regulatory and tax framework to enable Insurance Linked Securities business to take place in the UK.

This consultation ran from
to

Consultation description

To help cement London’s position at the forefront of the global reinsurance business, the government is consulting on a new regulatory and tax framework for Insurance Linked Securities business in the UK. Insurance Linked Securities enable insurers to transfer large and complex risks to capital market investors. A UK regime will help to strengthen the sector’s contribution to the UK economy and enhance the UK’s position as a leader in this global industry.

The consultation document sets out the approach to tax and regulation of ILS vehicles in the UK. It contains details on:

  • the background to the consultation and our aims for the ILS project
  • the responses received to the first ILS consultation in March
  • the corporate structure of ILS vehicles to be used in the UK, which will provide for ILS vehicles to be set up as PCCs
  • the taxation treatment of ILS vehicles and their investors
  • the approach to authorisation and supervision of ILS vehicles by the PRA and FCA

Documents

Regulations implementing a new regulatory and tax framework for Insurance Linked Securities: consultation

PDF, 323 KB, 29 pages

Annex A: Risk Transformation Regulations 2017

PDF, 944 KB, 79 pages

Annex B: Risk Transformation (Tax) Regulations 2017

PDF, 391 KB, 3 pages

Published 23 November 2016
Last updated 12 October 2017 + show all updates

  1. Updated with latest regulations that have been laid in Parliament

  2. Consultation response and regulations added.

  3. First published.

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