New Framework for Insurance Special Purpose Vehicles
The Authority has released a consultation document in relation to regulations and guidance notes for a new class of (re)insurer called Insurance Special Purpose Vehicle (or “ISPV”).
ISPVs are designed to facilitate transactions commonly referred to as Insurance Linked Securities and other forms of collateralised (re)insurance.
The draft regulations and guidance, which are attached to the consultation document, provide for this new class of business which will be available to sophisticated parties and undertaken on the basis that an ISPV’s obligations to such parties are limited to its available assets.
The consultation document may be found using the following link.
The Authority invites responses from interested parties by 19 June 2014. Contact details are included within the consultation document.