Issue 4 - November 2021
At Grant Thornton, we have a dedicated Asset Management and Investment Funds team. Our distinctive horizontal service offering and methodology has been developed from listening to our clients.
Our Financial Services Audit Director, Sarah Bradley was the MC for the 8th Irish Funds Annual UK Symposium in London
Our Financial Services Audit Director, Alan Cuddihy was the MC for the International Financial Services in South West Showcase
With the publication of the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Recovery Plan Requirements for Insurers) Regulations 2021 in 19 April 2021 requirements have been placed on (re)insurers in relation to recovery planning in order to ensure that if an insurance undertaking fails, it is in an orderly manner without significant financial stability impact or consumer protection detriment.
At its March 2020 meeting, the International Accounting Standards Board deferred the effective date of IFRS 17 Insurance Contracts for a year to 1 January 2023, with early application permitted.
As is the case globally climate change is receiving more and more attention within the Central Bank.
The cost to policyholders of obtaining cyber coverage has increased significantly over the past 12 months and with rate increases of a similar magnitude predicted for the coming year, insurers and reinsurers accepting cyber risks have witnessed substantial top-line growth. Whilst this development is positive for (re)insurers’ reported revenues, the additional cost burden of obtaining such an insurance policy could restrict the ability of start-up and smaller scale enterprises to obtain adequate cyber risk cover. With the increased frequency and severity of cyber attacks self-apparent, there is also the question of the impact of writing such policies on (re)insurers’ bottom-lines as claim costs will likely increase as attacks become more sophisticated.
The Central Bank of Ireland has published the third annual Private Motor Insurance Report of the National Claims Information Database (NCID). Some of the findings published:
For more details visit https://www.centralbank.ie/news/article/third-private-motor-insurance-report-of-the-national-claims-information-database-published-16-november-2021
The European Union has published a Commission Regulation on 23 November 2021 endorsing IFRS 17 'Insurance Contracts'. The regulation adopts IFRS 17 Insurance Contracts and the June 2020 amendments to IFRS 17 with the same effective date as the IASB (1 January 2023).
In accordance with the first EU’s Anti-Tax Avoidance Directive (‘ATAD’), Ireland was required to introduce interest limitation rules (“ILR”). These rules will apply for accounting periods commencing on or after 1 January 2022.
Finance Bill 2021 (‘the Bill’) introduced a new interest limitation rule (‘ILR’) as required by the EU’s anti-tax avoidance directive (‘ATAD’). This will have implications for taxpayers which have interest expenses in excess of interest income (known as ‘exceeding borrowing costs’).
On 21st April 2021, the European Commission adopted Delegated Acts (non-legislative acts adopted by the European Commission to amend or supplement legislation) amending the current UCITS, AIFMD and MIFID II legislation as part of its wider initiative to continue transforming EU’s economy into a sustainable financial system and become carbon neutral by 2050.
On the back of the 26th UN Climate Change Conference of the Parties (COP26), the Central Bank of Ireland (“CBI”) issued a letter on 3 November 2021 to all Chairs and CEOs of Regulated Financial Services Providers (“RFSPs”) outlining its supervisory expectations of RFSPs regarding climate and other environmental, social and governance (“ESG”) issues.
