FSA seeks to manage Solvency II uncertainty

The FSA has said it is trying to find ways to manage the uncertainty resulting from EU delays to implementing Solvency II.

The regulator’s annual review for 2010/11, published today, says the consultation timetable for implementing the insurance directive has been affected by the delays.

The review says the FSA expects to publish its timeline for consulting on the Solvency II implementation “in due course” with the first paper due later this year.

It says: “Policy in this area continues to be developed in Europe. There have been delays to the timeline that have affected our own consultation and shortened the window for implementation. As a result, we are looking for ways to manage this uncertainty.”

The review also says the FSA has increased its resources “significantly” to cope with Solvency II with 450 staff trained to implement the directive by the end of March and recruitment ongoing to find additional skills.