Chapter 8 - Treatment of groups

[rlsrachaellouisesmith]

Hi,

On page 15 of this chapter it talks about G-SIIs being subject to enhanced supervision, including:
effective separation of non-traditional and non-insurance business (where feasible and appropriate).

Can you give a 'real-life' example to give this section of the reading to life please?

I have put some of my ideas below:
- non-traditional might be referring to asset management activities, but not sure if it could be something else.
- Effective separation might mean be in a separate subsidiary or fund
- where feasible --> if it is practicably possibly with reasonable cost and resource requirements
- where appropriate --> asset management activities associated with management of insurance assets should not be segregated, but if had a standalone fund management section of the business then they would need to be separated.

Thank you,

Rachael

 

[Lindsay Smitherman]

Hi - if you want further information on this section, the following paper should provide the extra detail. However, I have to add that this does not feel like a particularly important paragraph (or, indeed, section of the course) to focus in depth on, particularly given the recent discontinuation of identification of G-SIIs, so am not convinced that this would be a great use of limited study time!

https://www.fsa.go.jp/inter/iai/20130719/04.pdf

 

[rlsrachaellouisesmith]

Noted, thank you