Solvency II – Firms Must Keep Up Momentum

City compliance specialist warns of potential danger and opportunities with Solvency II implementation
By: Ela Beach Media (on behalf of FifthStep Ltd)
 
Nov. 14, 2011 - PRLog -- LONDON – Fifth Step, the City-based compliance and governance specialist, has warned that insurers who delay their implementation programmes as a result of the FSA’s decision to defer Solvency II deadlines risk incurring severe penalties and losing out on valuable operational opportunities.

Fifth Step is warning that the recent FSA announcement – declaring the revised Solvency II implementation assumptions – does not mean that that work on Solvency II can be delayed for a year. Fifth Step has advised clients that the FSA, who having responded considerately to insurers’ concerns, will have no sympathy for anyone who misses the new dates. They emphasise that because of this, it is imperative that firms maintains their momentum and stay focused on implementation.

Recent research by Fifth Step shows that whilst the deferral to 1 January 2014 is unpopular with some firms, many are discovering its merits. For those firms who believe that they had Solvency II compliance ‘in the bag’ for the original date (and for whom the delay may appear unwelcome), Fifth Step believes the deferment provides several valuable opportunities. These will allow firms to:
          * complete more work on data;
          * complete further parallel runs;
          * hone and accelerate their models;
          * imbed their new operating practice;
          * improve firms’ ORSA;
          * test firms’ governance (especially change management) in the real world.

Additionally, firms can also revisit any business beneficial opportunities that may have been sacrificed on the altar of the original timetable.

Through working closely with clients, Fifth Step has identified several problem areas, including understanding and managing impacts on the rest of their internal change portfolios. Plans, including key resources, for other projects will necessarily have been aligned to Solvency II related deliveries, and these too will now need careful consideration as part of the re-planning processes.

With the FSA stating that supervisors will be contacting firms in the coming weeks to discuss what this means for implementation plans, firms will need to be ready and prepared to show that they have taken account of the new dates, and know what they are going to do with the time that they now have. Accordingly, Fifth Step is helping its clients ensure that Solvency II remains their focus and a demonstrable priority.

Darren Wray, Fifth Step’s CEO commented: “Whether the implementation deferral overtly suits them or not, all firms need to take as much advantage as they can from the added time that is now available to them, and mitigate as far as possible any negative impacts. We are helping firms to fully leverage this advantage.”

He continued: “Those firms who were knowingly, or otherwise, behind the curve, or who had thus far concentrated on delivering bare minimum compliance with Solvency II, now have the windfall opportunity to refine their approach and plan successful deliveries. The extended date for Internal Model applications allows firms to reconsider using this route. Our specialist team are well placed to assist clients realise this opportunity.”

Fifth Step has recently expanded its team to meet the increased demand from clients for advice, resources and implementation support with the aim of achieving Solvency II compliance ahead of the FSA deadline.

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Fifth Step is a specialist consultancy and implementation specialist providing a range of compliance, governance and business continuity services. Headquartered in the City of London, the company helps businesses ensure they comply with legislation and good governance requirements and can cope with businesses interuptions or disruption caused by unexpected events and crises.

The company was formed in 2009 by a group of senior information technologists, IT management, communications professionals to facilitate best practice in compliance and business continuity management for businesses and public sector organisations across a range of sectors notably, insurance and financial services, technology, industry and publishing.

Fifth Step works closely with its clients, ensuring they have appropriate and timely advice, resources and support to operate legitimately and when faced with adversity. Its consultants operate across the UK, the Continent, North America, Asia & Australasia.
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Source:Ela Beach Media (on behalf of FifthStep Ltd)
Email:***@elabeach.com Email Verified
Zip:EC1V 2NX
Tags:Solvency 2, Insurance, Financial Services, Solvency Ii Directive, Fsa
Industry:Insurance, Banking, Business
Location:London City - London, Greater - England
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