Why is This Topic Important to Wealth Managers? This blogticle presents information concerning international regulatory agreements with regards to insurance contracts. The information is provided for those wealth managers who are subject to New York jurisdictional control as it is intended to keep practitioners up to date and current.
The New York State Insurance Department and the Swiss Financial Market Supervisory Authority (FINMA) have announced that the two agencies have executed a memorandum of understanding (MoU) allowing for closer cooperation between the two regulatory bodies.
The agreement was announced yesterday by New York State Insurance Department Superintendent James Wrynn and Dr. Patrick Raaflaub, CEO of FINMA, the government agency responsible for financial regulation in Switzerland.
“Close cooperation between international regulators is among the most effective ways to regulate global financial services. The Insurance Department is proud to execute this agreement with FINMA because it will allow both regulators to closely cooperate to promote the growth of robust, solvent financial services and markets and safeguard the interests of policyholders, creditors, investors and other stakeholders and the financial services industry as a whole,” Superintendent Wrynn said.
“Financial markets and financial institutions are becoming more and more global. International cooperation between regulators and supervisory authorities is key to meeting these developments. Therefore, FINMA is very satisfied to conclude an MoU with the New York State Insurance Department. This is another important step,” Dr. Raaflaub, CEO of FINMA, said.
Under the MoU, either regulator may request assistance from the other, including obtaining information on a regulated person or entity. Either regulator may provide the other with investigative assistance with respect to companies and persons engaged in the business of insurance.
The New York State Insurance Department has already executed MoUs with insurance regulators in 10 other countries, including Bermuda, China, France, Germany, Japan, and the United Kingdom. The Department is in the process of negotiating agreements with regulators in several other countries.
The New York State Insurance Department currently regulates all insurance business transacted in New York State and is the primary regulator for insurance entities domiciled in New York. Entities regulated by the Department have assets under management in excess of $4 trillion.
Later this year, the Insurance Department will merge with the New York State Banking Department to form the New York State Department of Financial Services. The merger is not expected to affect the regulators’ ability to continue to share information about insurance companies.
The Swiss Financial Market Supervisory Authority (FINMA) is an independent supervisory authority responsible for protecting creditors, investors, and policyholders, as well as ensuring the smooth functioning of financial markets. FINMA’s primary objective is to provide protection for market players and the financial system, as well as the system’s reputation. FINMA reports directly to the Swiss parliament.
Tomorrow’s blogticle will continue to discuss relevant topics related to wealth management.
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