Evolving Distribution Models in Asset ManagementIn this report we focus on Evolving Distribution Models. In particular, we look at the forces that are leading to a reshaping of distribution functions and how different elements of the model are changing. The Unit Pricing Committee’s tax agendaThe FSA are conducting a Thematic Review of unit linked business. Gordon Gray discusses some topical tax issues relevant to the management of unit-linked business. Update regarding client money Shortfall ApplicationThere are various possible ways the Court might hold that shortfall claims into the general unsecured estate should be valued. Below are some examples which illustrate some of the key matters that will need to be determined by the Court. Introduction of a VAT cost sharing exemption into UK lawVAT exemption for services provided by a cost sharing entity is now available as the UK has brought itself in line with European law. This should allow partly or fully exempt businesses to receive certain services free of VAT. The light bite? FATCA for non-Financial InstitutionsIn this fifth article on FATCA, we consider the pertinent points for non-Financial Institutions, such as general insurers and insurers that only write Exempt Products and this proves to be a much lighter meal. Impact study may not end Solvency II delaysFollowing agreement of the terms of reference by the European Parliament, the Council and the Commission, European Insurance and Occupational Pensions Authority (‘EIOPA’) has today launched the long-term guarantee impact study Premium limit for qualifying policiesWe consider in this article the proposed legislation in draft Finance Bill 2013 in relation to the new £3,600 premium limit for qualifying policies and whether concerns raised by the Industry during consultation have been appropriately addressed.
The tax opportunity hiding in Solvency IIThe Solvency Capital Requirements under Solvency II could be cut by 25% or more if the tax element is treated appropriately. Gordon Gray discusses the tax opportunity hiding in Solvency II for the Insurance ERM website. Building Societies Database 2012KPMG's Building Societies Database report annually examines the financial results of the UK's building societies. 2012's edition discusses their successes, future regulatory challenges and whether they are to play a big role in the future of UK banking Solvency II - Data Impacts on Asset ManagementSolvency II is the most comprehensive regulation ever imposed on the insurance industry across Europe. The essence of the Directive is to require insurers to provide transparency over their risk and the levels of capital held to cover that risk. MF Global UK - 30.7 ApplicationOn 3 May 2012, the Administrators made an application to the High Court seeking directions as to the status of certain US Treasury Bills that were held by MF Global UK Limited when it entered special administration The systemic question shifts to insurersThe IAIS published a consultation paper on its proposed method for assessing whether an insurance company is of global systemic importance. The paper does recognise in clear terms that “the traditional insurance business model is different from banking”. Insurance business transfers in the new life tax regimeThe major changes to the treatment of insurance business transfers in the new life insurance tax regime means that groups progressing or contemplating transactions should reassess their restructuring processes and analysis of tax risk. UK Banks Performance Benchmarking Report FY Results 2011The report examines the 2011 full year results of the following banks: Barclays, HSBC, Lloyds Banking Group, RBS and Standard Chartered. We also include some analysis of the results of Clydesdale Bank, Nationwide Building Society and Santander. Mobile banking: a golden future?In March’s edition of the KPMG Banking Newsletter, we discuss specific findings of the latest UK Banks Performance Benchmarking Report Full Year Results 2011. Reshaping Investment banksArticle on reshaping investment banks from KPMG’s UK Banks Performance Benchmarking Report Full Year Results 2011 Simplification of bankingIn March’s edition of the KPMG Banking Newsletter, we discuss specific findings of the latest UK Banks Performance Benchmarking Report Full Year Results 2011. Practical implications of FATCA for UK insurersKPMG discusses some practical FATCA considerations, such as the impact on investments, policy documentation and personal pensions, and indentifies areas to discuss further with industry bodies. Swallowing the FATCA operational challengeKPMG discusses the practical implications of FATCA guidance, including perceptions that it only impacts US investors. The article considers whether pension policies in or out of scope and the operational challenges facing insurance companies. FATCA delay heightens FFI uncertaintyWith the clock ticking towards 1 January 2013, when the Act comes into force, foreign financial institutions (FFIs) are still waiting for publication of the preliminary guidance. Addendum to Insurance Regulatory Returns WorkbookKPMG’s Addendum to the ‘Insurance Regulatory Returns Workbook’ is intended to assist insurers in the preparation of their 2011 year end regulatory returns to the Financial Services Authority (FSA). Insurance Regulatory Returns WorkbookKPMG’s Insurance Regulatory Returns Workbook is intended to assist insurers in the preparation of their regulatory returns to the Financial Services Authority (FSA). The hidden cost of delayed FATCA regulationsThe U.S. Internal Revenue Services’ (IRS) delay in release of the proposed regulations for the Foreign Accounts Tax Compliance Act (FATCA) may drive up the costs of compliance programmes, warns KPMG. MF Global UK Limited: administration updateThe Joint Special Administrators of MF Global UK Limited, have released an update following the creditors' meeting on the progress made in the special administration to date. Ring-fencing retail banks: no turning backThe UK Government announced that it will implement the Independent Commission on Banking (ICB) recommendations as the "most far-reaching reform of British banking in our modern history". MF Global UK Limited: administration updateThe Joint Special Administrators of MF Global UK Limited, today release their latest administration update, which includes an update on positions closed and client and creditor claims forms received to date. KPMG welcomes delay to residence testHM Treasury has delays the implementation of a new statutory residence test until April 2013 – a year later than the original proposal of April 2012 MF Global UK - What is a Special Administration?MF Global UK Limited is in special administration under The Investment Bank Special Administration Regulations 2011. This is the first time a company has been placed into special administration under the Special Administration Regs. MF Global UK Limited: administration updateRichard Fleming, Richard Heis and Mike Pink of KPMG LLP, the Joint Special Administrators of MF Global UK Limited, have announced today a timeline for the return of client money and client assets. ESMA takes on board industry feedback on AIFMDTom Brown, European head of investment management at KPMG, responds to the technical advice issued by the European Securities and Markets Authority on the Alternative Investment Fund Managers Directive MF Global UK - Table of liquidated trades and positionsBased on information received from the following exchanges and clearing houses, open trades and positions of MF Global UK Limited (in special administration) have been liquidated, with effect from the corresponding dates listed Financial Reporting by Investment ManagersThe third annual report on financial reporting by Investment Managers provides key analysis and comparisons across high profile areas for the industry in the context of the demanding and changing environment we are currently facing. Administrators appointed to MF Global UK LimitedUpon the application of the directors of MF Global UK Limited, the High Court has today appointed Richard Fleming, Richard Heis and Mike Pink of KPMG LLP as joint special administrators of MF Global UK Limited, a UK based broker-dealer business. Technical Practices Survey 2011Now in its sixth year, our Technical Practices Survey continues to be highly regarded by individuals, companies and indeed other consultancies as a guide to the range of practices adopted in various areas of UK life actuarial work. Solving tax for Solvency IIThe solvency capital requirement is defined as an amount equal to a 1 in 200 year loss. Crucially, this loss is net of any tax relief and so this tax relief is a key driver of the overall capital requirement. Understanding your Solvency II assurance needsThe focus of most Solvency II programmes to date has been on design and implementation. However, companies and groups are now considering what assurance is required to help ensure programmes are on track. Pillar 2 considerationsPillar 2 includes the Own Risk and Solvency Assessment, the “ORSA” which is at the heart of Solvency II. Navigating the wave of changeRegulators, standard setters and governments have triggered an unprecedented wave of change impacting insurers, distributors and customers. Internal Model ValidationValidation can be thought of as the controls over the Internal Model processes, in a similar way to how the financial systems are validated. Hence, firms need to understand the end-to-end process that will be covered by the validation framework. Pensions Auto Enrolment: one year to goWith just a year to go before auto enrolment becomes compulsory for large employers, KPMG is warning that businesses that have not already begun to plan for this major change need to take action fast Pillar 3 Survey resultsThis report contains the detailed results of the survey along with our analysis of the findings. Pillar 3 Disclosure and ReportingIn 2010, many Solvency II programmes held back their Pillar 3 activity due to dependencies on other work streams and uncertainty over the detailed Level 2 and 3 requirements. Building Societies Database 2011This report summarises the financial performance of the current 48 UK building societies in a series of tables of statistics, ratios and rankings extracted from the latest published accounts for years ending from August 2010 to April 2011. Insurance Reporting Round UpThis publication complements our General Insurance: Performance Benchmarking Survey, which reviews the performance, disclosure and accounting policies of general insurers with a UK bias to their operations.
UK Banks Performance Benchmarking Report HY Results 2011The report examines the 2011 half year results of the following banks: Barclays, HSBC, Lloyds Banking Group, RBS and Standard Chartered. We also include some analysis of the results of Clydesdale Bank, Nationwide Building Society and Santander. FATCA and the funds industryKPMG surveyed leading fund promoters in 12 countries to look at the key challenges the industry needs to address as a matter of urgency to prepare for FATCA implementations. Financial Reporting Matters 28 June 2011In this edition we focus on the IASB's changes to employee benefit accounting. We look at the ASB's latest comments on the future of UK GAAP and the IASB's revenue recognition standard. The Future Shape of Banking Unintended Consequences, Bill Michael’s speech presented at the BBA’s Annual Banking Conference on 29 June 2011 Executive Insights Summer 2011Hot off the press, our publication Executive Insights shares the highlights from the ABI’s leadership survey carried out earlier this month. Executive Insights is being launched at the ABI’s Biennial conference on the 22nd June. Rebuilding ConfidenceAs the government considers stepping up the role played by insurers in the relationship between the state and the private sector, rebuilding trust in financial services has never been more important. Ready for Reform?The next 18 months promises to be something of a rollercoaster ride for the insurance industry, says KPMG in the UK’s Head of Insurance, Drew Fellowes. However, the challenges facing the sector will also create significant benefits. Hedge Fund RedomiciliationThis report explores some of the key trends surrounding hedge fund redomiciliation and is set against a backdrop of major regulatory change and growing competition within the global hedge fund industry. Forensic Accountant Issue 36 Spring 2011Welcome to the Spring 2011 edition of Forensic Accountant, KPMG's magazinr exploring some of the issues currently impacting the litigation and dispute resolution landscape. Dodd Frank ActWith as many as 11 federal regulatory agencies required to write nearly 250 new rules during the next year or more, the Dodd-Frank Act will continue to present challenges for financial services firms. Phil on Our Perspective: Current IssuesWe’re into 2011 now and we’ve seen a real step change in the way that programmes are moving from planning and preparation through to full scale implementation. Solvency II Benchmarking – Commentary on resultsPhil Smart on the key findings: “It’s clear from what we’ve seen that both timelines and resources are under tremendous strain, with big demands in terms of meeting the requirements and getting everything done in time... Technical Practices Survey 2010Now in its fifth year, our Technical Practices Survey continues to be highly regarded by individuals, companies and indeed other consultancies as a guide to the range of practices adopted in various areas of UK life actuarial work. Asset Management Valuation AdvisoryAs the investment management universe grows in size and complexity, banks and investment firms need to meet the challenge of valuing assets that are difficult to value - particularly asset-backed securities | 