New York State
Eric R. Dinallo Superintendent of Insurance 25 Beaver Street New York, N.Y. 10004
|ISSUED 10/14/2008||FOR IMMEDIATE RELEASE|
NEW YORK, UNITED KINGDOM INSURANCE REGULATORS SIGN COOPERATION ARRANGEMENT
New York State Insurance Superintendent Eric Dinallo and Hector Sants, Chief Executive Officer of the United Kingdom Financial Services Authority (FSA), the United Kingdom’s financial regulator, today announced the two authorities have executed a memorandum of understanding (MoU) allowing for closer cooperation between the two regulatory bodies. The mandates of both agencies include insurance regulation.
The MoU establishes a formal basis for consultation, cooperation and coordination between the FSA and the New York State Insurance Department (NYSID), and provides for the exchange of information relevant to each authority’s supervisory, regulatory and examination responsibilities.
“The increasingly global financial markets require that regulators communicate quickly and cooperate closely in order to operate effectively,” Dinallo said. “London and New York are recognized as being the world’s leading financial centers. The world watches what we do, and this arrangement emphasizes our awareness of our responsibilities to the global insurance market. The FSA and the Department have demonstrated, most recently through our work on monolines and during the current financial crisis, that international cooperation is essential to protect policyholders and provide the security that is fundamental to the industry’s success.”
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, including questioning or taking testimony and conducting inspections and investigations.
The MoU commits the United Kingdom and New York regulators to cooperating with each other in the interest of fulfilling their respective regulatory mandates and functions.
Recently, the Department entered into similar MoUs with the insurance regulators of Germany, Taiwan and Bermuda, and is close to executing arrangements with other regulatory authorities.
Negotiating the MoU for the NYSID were Deputy Superintendent and General Counsel Robert Easton and Supervising Attorney D. Monica Marsh. For the FSA, negotiations were handled by David Johnston, Manager, London Market Insurers Team, and Richard Bennett of the General Counsel's Division.
About the New York State Insurance Department (NYSID)
The NYSID regulates all insurance business transacted in New York State and is the primary regulator for insurance entities domiciled therein. In its capacity as regulator, the NYSID administers, interprets and enforces the provisions of New York’s insurance laws and regulations, and is vested and charged with all rights, powers and duties as expressed or reasonably implied by the New York Insurance Law. Entities regulated by the NYSID have assets under management in excess of $4 trillion.
About the Financial Services Authority (FSA)
The Financial Services Authority (FSA) regulates insurance business transacted in the United Kingdom pursuant to its mandate to administer and enforce the Financial Services and Markets Act 2000 (“FSMA”) which provides, amongst other things, that no person may carry on a regulated activity in the United Kingdom unless authorized or exempt. Insurance was designated a regulated activity by Her Majesty’s Treasury under the FSMA Regulated Activities Order 2001/544.
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