IFLR Publishes Elliot Stevens Article on Solvency II Directive’s Impact on Insurance Industry, Asset Managers
International Financial Law Review has published the article “A glass half full” by London-based Akin Gump counsel Elliot Stevens. The article discusses the considerable challenges that implementation of the Solvency II Directive poses for the European insurance industry and, by extension, for asset managers in the alternative investment fund industry.
Stevens describes the Directive as being “built around three pillars”: quantitative requirements around measurement of assets, liabilities and capital; expectations with regard to internal governance, risk management and solvency assessment; and disclosure and transparency requirements. Stevens notes that Solvency II will have a “dramatic impact on asset managers’ relationships with their insurance company clients, primarily with regard to asset allocation and data management and provision.”
The challenges that Stevens notes notwithstanding, he also sees opportunity for those managers who “surmount the challenges and are able to demonstrate compliance,” as they will establish themselves as the “first and only port of call for insurance company assets.”
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