GATS and Financial Services 16 May GATS AND FINANCIAL SERVICES DOMESTIC REGULATION: ARTICLE VI ISSUES Alastair Evans, Head, Government Affairs, Lloyd’s 16 May 2005

GATS and Financial Services 16 May Domestic Regulation Lloyd’s  Insurance/reinsurance marketplace  Capacity of £13.7 billion in 2005  Risks written from over 200 countries  GATS modes 1, 2 and 3. Current WTO Trade Round  An opportunity to remove barriers to trade  Role of domestic regulation

GATS and Financial Services 16 May Domestic Regulation Role of regulation in the insurance sector Growing importance of the work of the International Association of Insurance Supervisors, a global standard setter. Trust between regulators Mutual recognition of regulatory regimes.

GATS and Financial Services 16 May Domestic Regulation The provisions of GATS Article VI The ‘prudential carve-out’. ‘Notwithstanding any other provisions of the Agreement, a Member shall not be prevented from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity and stability of the financial system. Where such measures do not conform to the provisions of the Agreement, they shall not be used as a means of avoiding the Member’s commitments or obligations under the Agreement.’

GATS and Financial Services 16 May Domestic Regulation Working Party on Domestic Regulation European Services Forum papers on domestic regulation  Why good quality regulatory regimes are desirable  Transparency and other issues  Conclusions Insurance industry Model Schedule of GATS commitments

GATS and Financial Services 16 May Domestic Regulation Conclusions