Few would debate the importance of recognising and addressing conduct risk. The recent increased attention it has received within the financial services industry has been largely driven by ever-strengthening conduct of business supervision. This paper by Milliman’s Emma Hutchinson and Jennifer van der Ree covers recent regulatory developments in the United Kingdom in relation to conduct risk. The authors also discuss best practice for robust conduct risk management frameworks.
For many firms, year-end 2017 will be the first time that they need to recalculate the Transitional Measure on Technical Provisions (TMTP relief), although some firms have already applied and received approval for a recalculation following material changes in their risk profiles.
Milliman consultants have experience in recalculating the TMTP relief for a number of clients, performing independent reviews of recalculated TMTP relief, and have provided assistance with the development and review of firms’ recalculation policies.
This update by Milliman’s Oliver Gillespie, Emma Hutchinson, Marie-Lise Tassoni, and Stuart Reynolds summarises findings from these exercises, along with our own views on different potential approaches to recalculating the TMTP relief and associated key issues and challenges.