Tidigare Europeiska
Presentationsmaterial från complianceseminariuim
Kära läsare, Nu har det gått några dagar sedan vi hade vårt seminarium om compliance och vi hoppas att all ny information har hunnit sjunka in. Som vi alla vet så är compliance en viktig fråga som alltmer kommer att påverka sättet vi arbetar på och hur vi löser försäkringsfrågor runt om i världen. Här har vi sammanställt en pdf med samtliga presentationer samt även en kort summering av varje föreläsare. Jag skulle personligen vilja tacka alla er som tog er tid och kom till seminariet, jag hoppas att det var välinvesterade timmar. Och ni som inte hade möjlighet att närvara hoppas jag få träffa vid ett annat tillfälle. Du kan klicka dig fram i materialet via knapparna här nedanför. God läsning! Johannes von Hülsen
Sammanfattning Inledning SEB AXCO Shearman & Sterling Avslutning
Tidigare Europeiska
Summering
SEB • Är internationell compliance, regelefterlevnad, viktigt? Vi fick en tydlig indikation på att så är fallet och att kraven konstant skärps. Dessutom går det relativt snabbt. För drygt fem år sedan fanns det ingen dedikerad complianceansvarig på SEB, förutom på papperet. • Det som gäller idag kan vara inaktuellt i morgon. I takt med att kraven skärps och complianceproblematiken i allt större utsträckning diskuteras, ändras lagar och regler i allt större takt. Därför är det viktigt att hålla sig uppdaterad och ständigt följa med i utvecklingen. • Att arbeta med compliance kräver många olika arbetsmoment. Allt från rådgivning, kontroll och uppföljning till riskanalyser, utveckling, underhåll samt utbildning. Ett komplext ämne där det i många fall fortfarande inte finns klara rekommendationer, utan kräver att man själv sätter sig in frågor och ibland driver en ensamarmé. • Kraven från Finansinspektionen ökar vilket sätter företagen under allt starkare press att lösa detta.
AXCO • AXCOs praktiska exempel betonade att det är en komplex värld vi lever i när vi talar om försäkring för affärsresor och utlandsplaceringar. One size fits all gäller inte längre. • Vi kan inte bara söka i AXCOs databaser och hitta ett svar svart på vitt. Det krävs en hel del arbete med att bland annat översätta information och rekommendationer så att dessa blir applicerbara på verksamheten, inte minst för att fungera inom försäljning, IT etc. • Vi såg att det finns stora skillnader mellan olika länder. I t ex Spanien, Egypten, Australien och Brasilien hanteras compliancefrågan på olika sätt.
Tillbaka till start
Tidigare Europeiska
Shearman & Sterling • Att vara compliant kan vara ganska kostsamt, men alternativet kan vara ännu dyrare. • Skillnaden är att kostnaderna för att vara compliant går att beräkna, medan vi kan bara gissa vad kostnaderna för att inte vara compliant kan bli. Dr Andreas Löhdefink visade bland annat exempel på kostnader som kan sträcka sig över miljontals USD. • Dr Andreas Löhdefink visade med flera exempel hur du som försäkringsgivare i EU, både måste vara medveten om lokala lagar inom EU, men också ha kunskap om att en flytt till ett land utanför EU innebär i ett antal utmaningar.
Sammanfattning av Johannes von Hülsen • Riskerna ökar. Vi känner till ett amerikanskt livförsäkringsbolag som har stämts av de brasilianska myndigheterna på ca 32 miljarder SEK. • Motsatsen till compliance är lagöverträdelser och bristande compliance bryter helt enkelt mot lagen. • Företag idag använder många resurser på att vara compliant ur ett nationellt perspektiv – men ser vi även till att vara compliant i de länder vi verkar i internationellt? • ERV är en del av Munich Re Group där vi tillsammans har ca 8 anställda som arbetar med compliance gällande affärsresor och utlandsstationering. De använder olika källor, bl a Axco, advokater, lokala försäkringsförmedlare och/eller lokala advokatbyråer. Men det är även nödvändigt att lägga resurser på att göra informationen och reglerna tillgänglig och fungerande inom bl a försäljning och IT.
Tillbaka till start
Tidigare Europeiska
4
Sverige Utlandet
Issue? “gråzonen”?
• Rättsliga krav • Tillsynskrav
• Compliancefunktioner • Juridiska funktioner • Etc.
• Rättsliga krav • Tillsynskrav
??
Gråzonen är, enligt vår uppfattning, ett påhittat begrepp i försäkringsbranschen
Business Compliance
Tillbaka till start
Tidigare Europeiska
Vad är skillnaden mellan General compliance och Business compliance?
General compliance
• På företagsnivå
• Ramverk
• Externt: Lagar och kontroll (försäkringslagstiftning och nya regelverk, pengatvätt, terror, bedrägerier mm)
• Internt: Riskmedvetenhet
Business compliance
• På produktnivå
• Tillämpning
• Regulatory Compliance - Regelefterlevnad
• Tax Compliance - Skatteefterlevnad
• Consumer Protection Compliance – Konsumentskydd
5 Tillbaka till start
Tidigare Europeiska
Varför blir Business compliance den ”Nya Gränsen” för Corporate Travel insurance ?
Myndigheter och regelverk
Nya Gränsen
Försäkringsköpare Nya Gränsen
Försäkringsbolag Nya Gränsen
6
1
2
3
Tillbaka till start
Tidigare Europeiska
Nya gränsen I
• Att vara non compliant är inte accepterat längre och kan dessutom vara affärskritiskt. Risken för böter har blivit mer påtaglig och kan handla om miljontals kronor.
• Dom från EU-domstolen påvisar att det inte längre bara är försäkringsbolagets skyldighet att säkerställa att försäkringsskyddet är korrekt. Detta gäller numera även mäklare och försäkringsköpare.
• Solvency II sätter nya gränser gällande osynlig verksamhetsstyrning/business control och transparens. Verklighet 2016.
• Finanskrisen I: De globala regulatorerna/tillsynsmyndigheterna har dramatiskt ökat kunskapsutbytet. De globala standardiserade reglerna är ingen science fiction-film, utan verkligheten om 3-5 år
• Finanskrisen II: Offentliga budgetar under stress kräver nya och osedda intäkter. Försäkringsskatten = den ”bortglömda” skatten. En av de enklaste skatterna att påföra och som kan ge en enorm hävstångseffekt.
7 Tillbaka till start
Tidigare Europeiska
Nya gränsen II
Bra Business compliance är väldigt dyrt och dagens premienivåer kompenserar inte dessa
kostnader alls. Dagens skadekostnader är redan höga och stiger ytterligare år efter år
(medicinsk inflation vs. normal inflation)
8 Tillbaka till start
Tidigare Europeiska
Nya gränsen II
• Svenska företag blir alltmer globala eftersom den egna marknaden börjar bli mättad,
varför Business compliance har blivit en global utmaning.
• State of the Art Corporate Travel Insurance har blivit nödvändigt för globala aktiva
företag för att skydda sina mest värdefulla tillgångar, den mänskliga resursen. De reser
världen runt för att säkerställa framgång och konkurrenskraft.
• Bra Business Compliance är komplext: Ett hundratal av olika regler, undantag i
Lagstiftning, Försäkringsrätt, Bolagsrätt och Skatterätt. Varje land är olika och lagar och
bestämmelser förändras konstant.
• Bra Business Compliance är tvärvetenskaplig: baseras på global räckvidd, kulturer, språk
och politiska system, internationella försäkringslagar och skattelagar samt omfattande
produkt- och kundperpektiv.
9 Tillbaka till start
Tidigare Europeiska
Låt oss diskutera med Marknaden idag
• Vad betyder egentligen Business compliance idag i detalj?
• I vilken utsträckning och i vilken mån går det egentligen att göra rätt, s.k. Proper Business compliance”?
• Kan detta anses vara den mest utmanande frågan för den svenska marknaden för Corporate Travel Insurance de nästkommande 3-5 åren?
• Är den svenska försäkringsbranschen redo att anta utmaningarna?
• Om inte, vilka är konsekvenserna för:
• Försäkringstagare
• Mäklare
• Företag som köper reseförsäkring
• Anställda som omfattas (eller inte omfattas)
10 Tillbaka till start
Compliance i praktiken i SEB Liv
ERV 2014-01-29
Tillbaka till start
Agenda
De organisatoriska och teoretiska ramarna för compliance i SEB Liv Praktiken och verkligheten
Reflektioner
12 Tillbaka till start
13
SEB Liv - koncernstruktur
SEB Pensions- forsikring A/S
Denmark
SEB Life International Assurance Co Ltd
Ireland
SEB Trygg Liv Holding AB
Skandinaviska Enskilda Banken AB (publ)
PrJSC Insurance Company SEB Life Ukraine
Ukraine
AS SEB Elu- ja Pensionikindlustus
Estonia
AAS ”SEB Dzīvības Apdrošināšana”
Latvia
UAB “SEB gyvybės draudimas”
Lithuania
Gamla Livförsäkrings- aktiebolaget
SEB Trygg Liv
Trygg-Stiftelsen
0,4%
99,6% Fondförsäkrings-
aktiebolaget SEB Trygg Liv
Tillbaka till start
14
Compliance Retail Banking
Arne Jansson
Compliance Baltics
Ahto Nirgi
Head of Group Compliance Gent Jansson
Compliance Life
Håkan Nyholm
Compliance Operations
Karin Heierson
“CFO-function” Systems
Support & Administration
Compliance Monitoring
Compliance Control Room Karin Heierson, acting
AML Control Room
Jan Björkman
Group Compliance & Governance Organization
Compliance Group Operations & IT
Christina Karlén
Compliance Wealth
Management Åsa Vilson-Bergstedt
Compliance Merchant Banking
Mats Beckman
GC Office
Denmark – Anna Svensson Finland – Eva-Maria Broman Germany – Markus Esswein
Hong Kong – Nicholas Chan Ireland – Annette Angelosante Luxembourg – Falk Naumann
Norway – Frede Aas Rognlien Poland – Anna Lindholm Shanghai – Yunni Zuo
Singapore –Wei-Ching Poon Switzerland - Glenn Sealy UK – Harpreet Dhami, acting
US – Stephen Conwell, acting Russia – Pavel Artamonov Ukraine - Mykhailo Shomin
Compliance International
Elisabeth Catalano
Estonia – Monika Koolmeister
Latvia – Dace Rusina Lithuania – Vilija Nausedaite
Head of Group Governance Gent Jansson
Head of Group Compliance & Governance Gent Jansson
Governance &
Legal
Tillbaka till start
Compliance i praktiken i SEB Liv 15
Affärsverksamheten ● Riskkontrollfunktionen ● Compliance
● Internrevision
1:a försvarslinjen 2:a försvarslinjen 3:e försvarslinjen
Förhållandet till andra funktioner
Tillbaka till start
Compliance i praktiken i SEB Liv 16
Ansvarsområden
Rörelseregler och tillståndsfrågor
Konsumentskydd
Marknadsuppförande
Anti-penningtvätt och terroristfinansiering
Företagsstyrning och intern kontroll – t.ex. Solvens 2, outsourcing, instruktioner
Kontaktperson gentemot FI
Rådgivning, försäljning, kundklagomål
Sekretess
Skuldtäckning
Etik, intressekonflikter, gåvor/representation
Know Your Customer (KYC)
Tillbaka till start
Compliance i praktiken i SEB Liv 17
Arbetsmetoder och verktyg
Rådgivning
Kontroll, uppföljning (monitorering)
Rapportering
Riskanalys Årsplan
Följa regelutveckligen
Utveckla och underhålla interna regler
Utbilda och informera
Tillbaka till start
Compliance i praktiken i SEB Liv 18
Praktiken - första tiden
Omvärlden - Regelmiljön FI:s sanktioner 2008 mot de båda svenska försäkringsbolagen Finanskrisen Solvens 2
Compliancearbetet Tydlig compliancestruktur på plats ”Ensamarmé” Hantera verktygslådan: Rapportering, riskanalys (Risk
Assessment), complianceplan Städningen efter FI:s sanktioner Outsourcing
Solvens 2
Tillbaka till start
Compliance i praktiken i SEB Liv 19
Praktiken – fortsättningen och nuläget
Omvärlden - regelmiljön Regeltsunamin
- EU: Solvens 2, EMIR, Shortselling, MiFID 2 - USA: FATCA Finansinspektionen
- Fokus: Intern styrning och kontroll, anti-penningtvätt, rådgivning - Styra genom sanktioner
Compliancearbetet Solvens 2, FATCA, EMIR Anti-penningtvätt och finansiell rådgivning Mer fokus på kontroll och uppföljning
Tillbaka till start
SEB-koncernen och “Business Compliance”
SEB-koncernen generellt Lokala etableringar i utlandet med lokalt förankrad personal: Dotterbolag
eller filialer Alltmer vanligt att överväga om internationell affär ska stängas p.g.a. nya
regleringar i andra länder (EU eller USA)
SEB Liv Samtliga livbolag utom SEB Life International (Ireland) verkar enbart i
sina hemländer SEB Life International (Ireland) verkar enbart cross-border (9 EU-länder).
Business Compliance är helt centralt både för affärsmodell och compliance verksamhet
2014-02-06 | 20 Tillbaka till start
Reflektioner
Compliancekulturen i SEB Liv. Har den förändrats?
Hur ska compliance jobba? Rådgivning eller kontroll? Regelutvecklingen: Syns skogen för alla träd? Uppnås syftet med
regleringarna? Skapas nya risker? Behövs compliance? Hur ser framtiden ut?
21 Tillbaka till start
Axco THE IMPORTANCE OF COMPLIANCE ABROAD JANUARY 29TH, 2014 ERV, STOCKHOLM
Tillbaka till start
23 023 ABOUT AXCO
© Axco Insurance Information Services 2014
About Axco
With over 40 year’s experience in researching and delivering industry intelligence, Axco provides business-critical compliance and market data on non-life, life & benefits and employee benefits markets across the globe.
Axco information is relied upon by a diverse range of organisations and our client base includes the world’s foremost insurers, reinsurers, brokers, and employee benefits professionals.
Our unique business model and methods of research have enabled us to develop an extensive suite of products comprising in-depth reports, profiles, Q&A databases and information platforms.
Tillbaka till start
24 024 THE AXCO BUSINESS MODEL
© Axco Insurance Information Services 2014
The Axco business model
Axco operates under a mutualised outsourcing model
We look to build long term partnerships with both our clients and information and data sources
We undertake to understand our client’s individual requirements
We prioritise frequent interaction with our clients
We are committed to developing new and innovative methods of information delivery.
Tillbaka till start
Axco Database Central Global Industry
Repository
Local Offices
Other Brokers & Insurers
Regulators
Associations
Global Users Feedback
In-house research
Partners
Specialist Compliance
Research Team Copy of Axco report
Interviews, Correspondenc
e
Copy of Axco report
Interviews, Correspondence
025
HOW IS AXCO INFORMATION RESEARCHED
© Axco Insurance Information Services 2014 Tillbaka till start
026
INTERNATIONAL INSURANCE REQUIREMENTS
© Axco Insurance Information Services 2014
The challenges of international insurance
International companies, international operations = International risks
196 countries in the world = Hundreds of jurisdictions, cultures, insurance practices
Spectrum of insurance market development: Emerging/low expertise to Developed/well-funded
Aims of regulations: laws designed to protect consumers of insurance and financial systems not international companies
Accepting grey answers: Complexity (of the world), Ambiguity/Uncertainty (of insurance regulations)
Tillbaka till start
27 027 COMPLIANCE ABROAD CHECKLIST
© Axco Insurance Information Services 2014
‘Compliance Abroad’ checklist
Market environment
Insurance regulations and supervisory authority
Is non admitted permitted?
Local coverage requirements
Compulsory insurances
Taxes and charges
Local underwriting expertise and capacity
Tillbaka till start
028
Market Environment
© Axco Insurance Information Services 2014
Market environment
Ghana:
Resources 51.9% Urban 25.31 Million
Exports
Brazil:
Events 84% Urban 198.66 Million Natural
Resources
Tillbaka till start
29 029 Market Environment
© Axco Insurance Information Services 2014
Market environment
0
100
200
300
400
500
600
700
0
10000
20000
30000
40000
50000
60000
70000
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Writ
ten
Prem
ium
(mn)
GDP
(mn)
Ghana GDP (mn)
Written Premiums(mn)
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
9000000
10000000
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Writ
ten
Prem
ium
s (m
n)
GDP
(mn)
Brazil
GDP (mn)
Written Premiums(mn)
Tillbaka till start
030 Specific insurance regulations and supervisory authority
Ghana Proposed legislation can take years to reach Parliament
Brazil Four resolutions to just set out the basis of premium and loss reserves
Rapidly developing insurance and reinsurance market
Supervisors and Regulators want to protect local companies
Insurance Law 1989
Supplemented by Insurance Regulations
1990
Insurance Act 2006
CNSP Resolution no. 162 –
26 December
2006
CNSP Resolution no. 181 –
17 December
2007
CNSP Resolution no. 195 –
16 December
2008
CNSP Resolution no. 204 – 28 May
2009
Market Environment
© Axco Insurance Information Services 2014 Tillbaka till start
031
On what basis can I write Insurance?
Four main ways to write international business
Admitted – Policy is issued locally from a locally registered and based company
Cross Border Agreements – e.g. Freedom of Services
Fronting – Local office used and reinsured out
Non Admitted – Unauthorised Insurer
Insurance Options
© Axco Insurance Information Services 2014 Tillbaka till start
32 What is Non Admitted?
© Axco Insurance Information Services 2014
What is meant by non admitted?
Definition. Non-admitted insurance refers to the placing of insurance outside the regulatory system of the country in which the risk is located. A non-admitted insurance policy is one that may be issued abroad or the risk(s) may be included in a global master policy by an insurer unauthorised in that country. An authorised insurer is one which is permitted to do business in a country (or region) by the local supervisory authority.
Tillbaka till start
33 International Insurance Programme
© Axco Insurance Information Services 2014 Tillbaka till start
34
Admitted
Locally Licensed and Regulated
International Insurance Programme
© Axco Insurance Information Services 2014 Tillbaka till start
35
FOS
International Agreements
As if Locally Licensed Taxes and Charges
International Insurance Programme
© Axco Insurance Information Services 2014 Tillbaka till start
36
Locally Licensed Office
High Level of compliance confidence
Local Broker Policy Wording Policy Issue Premium Payment and
Terms Local Capacity
International Insurance Programme
© Axco Insurance Information Services 2014 Tillbaka till start
37
Non Admitted is Permitted
Insured’s Initiative Exempt lines of business Compulsory Insurances Taxes and Charges
Claims management
International Insurance Programme
© Axco Insurance Information Services 2014 Tillbaka till start
38
Non Admitted NOT
permitted
Fronting Partner
Abide by all local regulations
Long term partnership Local knowledge Not ideal for one time
placements Exposed to Reinsurance
taxes Expensive
International Insurance Programme
© Axco Insurance Information Services 2014 Tillbaka till start
39
Non Admitted
NOT permitted
Penalties Prison Reputational
Damage Claims payments
Central Cover DIC/DIL, Financial
Interest Clause, Master Policy
International Insurance Programme
© Axco Insurance Information Services 2014 Tillbaka till start
40 International Insurance Programme
© Axco Insurance Information Services 2014 Tillbaka till start
41
Non Admitted
NOT permitted
Central Cover DIC/DIL, Financial
Interest Clause, Master Policy
Fronting Partner
Non Admitted is Permitted
Locally Licensed Office
FOS
Admitted
International Insurance Programme
© Axco Insurance Information Services 2014 Tillbaka till start
42 How can Axco help?
© Axco Insurance Information Services 2014
HOW CAN AXCO HELP?
Critical to have knowledge in order to continue writing compliant programmes
Axco’s remit is to provide information
On the ground research: Axco visits 170 + countries
Avoiding information overload: ‘Less is More’ product development = right information for the right person at the right time
Integration of information sources and product design: portals, annotations, click-throughs
Combine that information with your expertise
KNOWLEDGE
Who to talk to
What questions should you be asking
What pitfalls should you be looking out for
Never a straight forward black and white area
Tillbaka till start
43 AXCO PRODUCTS
© Axco Insurance Information Services 2014
Insurance Market Reports Comprehensive country by country insurance market information Non-Life (Property & Casualty) and Life & Benefits.
Global Statistics Current and historical statistics covering non-life and life & benefits markets in over 180 territories worldwide.
Regulatory Alerts Monthly e-mail alerts reporting on key developments in regulation, legislation and premium taxation.
Insight Using Q&A structure, Axco Insight provides a customisable overview of global insurance markets.
Employee Benefits Reports Comprehensive coverage of worldwide employee benefits markets.
Clinical Trials Clinical trials insurance information for over 170 territories, including market and compliance data.
Compliance Point A single “go to place” combining regulatory and tax compliance information.
Country Benefits Profiles Concise information on state and compulsory benefits and typical employer practice in 69 countries.
CIMS Market Profiles Focused information on key aspects of the market and compliance requirements in over 170 territories.
Tillbaka till start
NON-LIFE INSURANCE MARKET REPORTS (IMR)
© Axco Insurance Information Services 2014
44
Non-Life Insurance Market Reports
Non-life insurance market information for over 170 countries Essential legislative, insurance regulatory and tax
compliance information Insurance market overview, distribution channels,
market size, structure and key players
All major lines of non-life business Comprehensive appendices containing market statistics,
company statistics, and directory of key market contacts Create customised reports to facilitate client
presentations and business tendering
Tillbaka till start
INSIGHT COMPLIANCE
© Axco Insurance Information Services 2014
45
Insight Compliance
Delivering global non-life (P&C) insurance regulations and taxes at a glance Single point of reference for non-life insurance
regulatory and tax compliance requirements
Question & Answer structure, with topics compiled from clients' most frequently asked compliance questions
Line of business-specific regulation for over 170 territories
Customise and filter data according to territory, line of
business and regulatory topic
Tillbaka till start
46 AXCO COMPLIANCE POINT
Interactive compliance tool guiding users through multinational insurance programmes calculating all taxes and charges that are applicable.
A single “go to place” combining
regulatory and tax compliance information.
Market solution tailored to user group needs
Intelligent questioning prompts users for the exact information needed as they progress through the system.
Up to date, transparent and unbiased information from multiple sources.
Auditable trail of decisions and results
© Axco Insurance Information Services 2014
Compliance Point
Tillbaka till start
47
For further information about Axco or for product demonstrations please come and find us afterwards.
Thank you
Tillbaka till start
www.axcoinfo.com
Axco Insurance Information Services 10 Old Broad Street London UK EC2N 1DW Tel: +44 20 7374 5252 Fax: +44 20 7374 5277 Email: [email protected]
Carol Au-Young Ali Mufti
Teams of London-based in-house research analysts, editors and statisticians ensure that information is maintained and updated to the highest standards. We welcome client enquiries and feedback which are integral to the continued development and enhancement of our products.
Tillbaka till start
International Compliance A Local Challenge Dr. Andreas Löhdefink Stockholm, 29 January 2014
Tillbaka till start
Content Part 1: The Embargo and Sanctions Framework (Overview)
I. Definitions 6 II. Overview of worldwide embargoes and sanctions 8 III. Example: The Iran sanction regime of the European Union 12 IV. Practical consequences 17
Part 2: Global Health Insurance Policies – International Legal Considerations I. Commercial background 19 II. Typical structure of sales process and policy underwriters 20 III. Primary issues 21 IV. Violation of local law by insurance company 22 V. Violation of local law by insured person 23 VI. Conflicts of law issues 24 VII. Selected Examples: Turkey 25 VIII. Selected Examples: United Arab Emirates 26 IX. Selected Examples: USA 27 X. Selected Examples: Europe 29 XI. Approach legal review 30
Back-up: The Iran Sanction Regime of the European Union
50 29/1/2014 International Compliance – A Local Challenge
Page
Tillbaka till start
Part 1 The Embargo and Sanctions Framework (Overview)
Tillbaka till start
How are you dealing with these guys?
International Compliance – A Local Challenge 52 29/1/2014 Tillbaka till start
From the press
International Compliance – A Local Challenge 53 29/1/2014 Tillbaka till start
I. Definitions (1/2)
Economic sanctions restrict freedom in foreign trade by prohibiting the trade of certain goods and
the provisions of certain services are ordered for foreign and security policy reasons against: legal and natural persons ("personal") countries ("country-specific")
Prohibition of any trade whatsoever with or for the benefit of the addressee full embargo
International Compliance – A Local Challenge 54 29/1/2014
Tillbaka till start
I. Definitions (2/2)
Three types of economic sanctions Financial sanctions – freezing of funds and other assets Trade sanctions – products Arms embargoes (e.g. military equipment, nuclear technology) Other goods embargoes (oil of Iranian or Syrian origin, "blood diamonds") Dual-use items
Trade sanctions – services Prohibition of technical and financial aid Investments Prohibition of fulfillment of claims Transport Travel restrictions Insurance (Iran, Syria)
International Compliance – A Local Challenge 55 29/1/2014
Tillbaka till start
II. Overview of worldwide embargoes and sanctions (1/4)
United Nations (UN) stipulate implementation at national level economic sanctions focus mostly on weapons of mass destruction and military
equipment are based on "restricted lists":
International Compliance – A Local Challenge 56 29/1/2014 Tillbaka till start
II. Overview of worldwide embargoes and sanctions (2/4)
European Union (EU) direct implementation by regulations extensive list of people whose funds must be frozen (as well as travel
restrictions for individuals) various types of trade sanctions well-aimed sanctions – no total prohibitions
United States (USA) implementation by means of Implementing Regulations, legislation or by
the Office of Foreign Assets Control (OFAC) prohibition of dealing with an extensive list of natural and legal persons
(Specially Designated Nationals List (SDN)) total prohibition to trade with countries (including brokerage) trade sanctions including investments, services, financing of imports/exports
International Compliance – A Local Challenge 57 29/1/2014 Tillbaka till start
29/1/2014 International Compliance – A Local Challenge 58
II. Overview of worldwide embargoes and sanctions (3/4)
Potential legal consequences of a violation Sanctions of a violation depend on applicable national laws Wide range of sanctions, including: penalties and fines imprisonment forfeiture of assets and funds close-down of business
Tillbaka till start
II. Overview of worldwide embargoes and sanctions (4/4)
Overview
International Compliance – A Local Challenge 59 29/1/2014 Tillbaka till start
III. Example: The Iran sanction regime of the European Union (1/5)
Overview The Council Regulation (EU) No. 267/2012 concerning restrictive measures against Iran provides for certain restrictions with respect to economic relationships with Iran:
Export and import restrictions
Restrictions on financing of certain
enterprises
Restrictions on insurance and re-insurance
The Council Regulation (EU) No.
267/2012
Restrictions on transport
Freezing of funds and economic
resources
Restrictions on transfers of funds and on financial
services
International Compliance – A Local Challenge 60 29/1/2014 Tillbaka till start
III. Example: The Iran sanction regime of the European Union (2/5)
Latest Developments Suspension of certain sanctions for a period of six months
(until July 20, 2014) Suspension includes: Prohibition on the provision of insurance and transport in relation to Iranian crude
oil sales to its current customers Prohibition on the import, purchase or transport of Iranian petrochemical products
and related services Prohibition on the provision of vessels to enable the transport of Iranian crude oil
and petrochemical products Ban on trade in gold and precious metals with the Iranian government, its public
bodies and the Central Bank of Iran Change of thresholds for authorizing financial transfers to and from Iran (increase
by factor 10)
29/1/2014 International Compliance – A Local Challenge 61 Tillbaka till start
III. Example: The Iran sanction regime of the European Union (3/5)
Insurance under Council Regulation (EU) No. 267/2012 General restrictions on insurance and re-insurance (Art. 35): Prohibition of insurance or re-insurance, or to broker the provision of insurance or
reinsurance This does not apply to the provision or brokering based in the EU to individuals
acting in their private capacity except for persons listed in the Annexes Detailed restrictions on insurance and re-insurance with respect to certain
business areas, transactions and customers: export credit insurance for sale, supply, transfer or export of goods or technology
especially dual-use items insurance for sale, supply, transfer or export of key equipment and technology for
the petrochemical industry (currently suspended) and nuclear developments insurance for sale, supply, transfer or export of with regard to military goods others, e.g. insurance for import, purchase or transport of crude oil and petroleum
products of Iranian origin (currently suspended)
International Compliance – A Local Challenge 62 29/1/2014 Tillbaka till start
III. Example: The Iran sanction regime of the European Union (4/5)
Restrictions on financing of certain enterprises Prohibition of the granting of any financial loan or credit, acquisition or
extension of a participation, creation of joint ventures with any Iranian person, entity or body mentioned in one of the Annexes
Freezing of funds and economic resources All funds and economic resources belonging to, owned, held or controlled by
the persons, entities and bodies listed in the Annexes of the regulation are frozen
Restrictions on transfers of funds and on financial services Procedures for Financial transfers if above EUR 10,000 or equivalent → notification by the competent authority if above EUR 400,000 or equivalent → authorization by the competent authority
(currently increased from EUR 40,000)
International Compliance – A Local Challenge 63 29/1/2014 Tillbaka till start
III. Example: The Iran sanction regime of the European Union (5/5)
Addressee of this regulation Iran Iranians Iranian entities as far as listed in any Annex Iranian bodies [European] Enterprises who would like to trade in-/directly with the above mentioned
International Compliance – A Local Challenge 64 29/1/2014 Tillbaka till start
IV. Practical consequences
Implementation of sanctions compliance program Step 1: Due diligence to determine the status quo, and initial risk assessment of
existing business with states/persons affected by sanctions. Step 2: Incorporation of the ″sanctions″ issue into internal policies such as the
Code of Conduct; where appropriate and relevant, creation of an internal ″foreign trade legislation″ guidelines also dealing with any other authorizations and certificates in connection with cross-border transactions.
Step 3: Creation of internal structures for efficient handling of the issue: Assessment of risk (due diligence) If required implementation of automatic processes Process of (pre-)approval by the responsible bodies (sanctions officer,
compliance group) Escalation to other practices (management/board)
International Compliance – A Local Challenge 65 29/1/2014 Tillbaka till start
Part 2 Global Health Insurance Policies – International Legal Considerations
Tillbaka till start
I. Commercial background Numerous insurance companies in Europe offer insurance policies that provide global health insurance coverage
Typical uses for global health insurance policies Short-term and long-term travel insurance Exchange student / au pair / study abroad insurance Expat insurance Group insurance for employees sent to locations abroad
67 International Compliance – A Local Challenge 29/1/2014 Tillbaka till start
II. Typical structure of sales process and policy underwriters
Insurance is usually sold to domestic residents prior to their move to a foreign country, but could also be sold thereafter
Insurance is typically prepaid for a fixed term or debited on a regular basis from a domestic bank account or otherwise paid by bank transfer to a (domestic) bank account
Insurance is underwritten by insurer licensed in an EU member state or elsewhere in the European Economic Area
Underwriting insurer is usually not licensed to conduct insurance business outside European Economic Area Representative offices to facilitate claims process may exist in selected countries,
particularly in the United States
68 International Compliance – A Local Challenge 29/1/2014 Tillbaka till start
III. Primary issues Issues related to insurance company Offering worldwide insurance coverage may violate insurance regulatory law of
affected countries Various countries impose criminal sanctions for insurance company employees
engaging in unauthorized insurance business Conflicts of law rules of affected country may provide for jurisdiction in foreign
country and application of substantive foreign law (e.g. contract law or consumer protection laws)
Issues related to insured person The affected country may have mandatory local insurance requirements that the
worldwide insurance policy may not satisfy Purchasing insurance from a foreign insurance company may also be a
punishable violation for the customer in the affected country
Taxes and Charges
69 International Compliance – A Local Challenge 29/1/2014 Tillbaka till start
IV. Violation of local law by insurance company
Merely selling a worldwide health insurance policy to a domestic resident who then moves abroad is usually regarded as permissible by foreign regulators
Typical problems: Correspondence with customer, collection of premiums, local representatives,
etc. Amendment of existing policy (minor amendment vs. complete novation,
compulsory amendments) New policy with customer already located abroad: Is sale only restricted to residents in affected country or to anybody? What are the
local requirements regarding residency? Does it make a difference if the potential customer proactively contacts the insurance
company? What measures need to be taken to ensure that policies are not bought online by
residents of affected country?
70 International Compliance – A Local Challenge 29/1/2014 Tillbaka till start
V. Violation of local law by insured person
Certain countries have mandatory local insurance requirements for residents or even temporary visitors Three models have appeared: insurance policy must meet certain minimum coverage levels, or insurance policy must be recognized by local authorities, or insurance policy must be underwritten by locally authorized insurer.
Violation of insurance requirement may trigger adverse consequences or could be grounds for removal
Certain countries have made it a (criminal) offence for consumers to buy insurance from non-locally authorized companies
71 International Compliance – A Local Challenge 29/1/2014 Tillbaka till start
VI. Conflicts of law issues
Conflicts of law issues tend to be less important than regulatory issues: German law and German courts provide good and efficient protection for
customers compared to other legal systems
However, there is the danger that customers could initiate legal action in foreign courts, and foreign courts could apply foreign law to insurance policies.
72 International Compliance – A Local Challenge 29/1/2014 Tillbaka till start
VII. Selected Examples: Turkey
Turkish insurance law requires that insurable interests of residents must be insured by insurance company operating in Turkey
Non-residents can buy foreign insurance which is governed by foreign law Consequences: Persons who conduct insurance business in Turkey without license can be
sentenced with up to five years of imprisonment Residents who purchase insurance coverage from a foreign insurance company
can be punished with a judicial fine (no defined amount) “Resident” is not defined under Turkish law and authorities have so far not
expressed any opinion on the definition of the term (breach of OECD Code?)
73 International Compliance – A Local Challenge 29/1/2014 Tillbaka till start
VIII. Selected Examples: United Arab Emirates (UAE)
Correspondence with customers via a UAE address may amount to conducting foreign insurance business; German address should be maintained
Prohibition on correspondence and transactions with medical service providers: only UAE-licensed insurance companies and UAE-licensed medical insurance
claims management companies are permitted to directly correspond or transact with local medical service providers
UAE medical insurance claims management companies may not act for non-UAE licensed insurance companies
as a result, foreign insurer cannot directly interact with or pay UAE hospitals and physicians
74 International Compliance – A Local Challenge 29/1/2014 Tillbaka till start
IX. Selected Examples: USA (1/2)
New Regulatory Framework under Patient Protection and Affordable Care Act ("Obamacare") From January 1, 2014 on, US citizens and foreign citizens in the US who are
considered resident aliens for tax purposes must generally have health insurance coverage, otherwise tax authorities can collect penalty payment
Insurance policies must satisfy Minimum Essential Coverage requirement Under new rules in effect since August 26, 2013, foreign insurance only
qualifies as "Minimum Essential Coverage" if insurance policy is specifically recognized by U.S. Department of Health and Human Services ("HHS").
However, according to guidance published by HHS on October 31, 2013, foreign regulated group insurance plans are generally deamed to satisfy the Minimum Essential Coverage requirement.
75 International Compliance – A Local Challenge 29/1/2014 Tillbaka till start
IX. Selected Examples: USA (2/2)
For individual health insurance policies the following requirements must be met: Plans must meet "Substantially All" requirements that are set forth in
guidance, but many of these requirements are not and cannot reasonably be satisfied by insurer that is not operating under US regulatory regime Prohibition on pre-existing condition exclusions Prohibition on, and limits regarding, risk adjusted premiums Full mental health and drug abuse treatment must be provided Many accounting requirements or issues of plan administration are specifically
tailored to US insurance plans Discussions with HHS indicated that many issues with regard to foreign
insurance products had not even been considered by US regulators Still unclear how flexible HHS will apply the "Substantially All"-Test to foreign
insurance products and which documentation it will require. Direct negotiations will be necessary with HHS in interim period until a clear policy has developed 76 International Compliance – A Local Challenge 29/1/2014 Tillbaka till start
X. Selected Examples: Europe
Problem: Conversion of group insurance policy into individual policy after move Insurance licence granted by home regulator applies in the entire European
Economic Area (EEA) (single-licence-principle), but insurance company must report to regulator if it intends to provide services in other EEA
Insurance policy concluded in one EEA state continues to apply if policy holder moves to another EEA state
Person covered under group health insurance policy has a right to have policy converted into individual policy if policy is terminated by policy holder
What if insured person demands policy conversion into individual policy after moving to another country? Will insurance company be conducting services in another EEA country? Will foreign law apply to insurance policy under Rome I Regulation (conflict of law)? Arguments: Just a conversion; policy will continue with old terms, no new conclusion of a
contract Insurance company does not intend to provide services in another EEA state, but
is forced to do so
77 International Compliance – A Local Challenge 29/1/2014 Tillbaka till start
XI. Approach of legal review
Risk based approach vs. full compliance review Minimizing legal risks by conducting review in key jurisdictions and adapting
sales, handling of customer relations and claims process. Selection of key jurisdictions ("heat map"): where are significant numbers of insured persons? which jurisdictions are of a particular importance from a business, company or
group perspective? which jurisdictions are likely to have specific regulations? which jurisdictions might be particularly eager in taking enforcement actions?
Development of question catalogue Local surveys, if necessary with assistance of local counsel, in key
jurisdictions
78 International Compliance – A Local Challenge 29/1/2014 Tillbaka till start
Back-up
Tillbaka till start
The Iran Sanction Regime of the European Union
Export and import restrictions regarding goods or technology especially dual-use items goods and technologies associated with nuclear developments goods and technologies included in the Common Military List of the EU key equipment or technologies especially for the following key sectors: exploration/production of crude oil and natural gas refining liquefaction of natural gas
key equipment and technology for the petrochemical industry crude oil or petroleum products located or originated in Iran newly printed or unissued Iranian denominated banknotes and minted coinage regulation of required authorizations by the individual member states
International Compliance – A Local Challenge 80 29/1/2014 Tillbaka till start
Curriculum Vitae
Tillbaka till start
Andreas Löhdefink Practice Andreas Löhdefink is a partner in the Mergers & Acquisitions Group in the Frankfurt office of
Shearman & Sterling. He advises domestic and international clients on M&A, private equity, public takeovers, corporate law, in particular the law of stock corporations and reorganization law, including spin-offs and conversions of companies, insurance and reinsurance (including supervisory law), capital markets and financial supervisory law matters. He also represents clients in corporate, M&A-related and commercial matters before arbitration tribunals and German courts.
Mr. Löhdefink was admitted as a lawyer in Germany in 2003 and in 2010 as a solicitor of the Senior Courts of England and Wales. In 2005, he received the title Ph.D. (Dr. iur.) from the University of Düsseldorf. He joined Shearman & Sterling in 2010. Prior to joining Shearman & Sterling, Mr. Löhdefink practised corporate law and M&A in the Düsseldorf, Frankfurt and London offices of a leading German law firm. He was named as one of the leading lawyers in Germany (for Insurance & Reinsurance and nomination for M&A) by Who's Who Legal.
Recent Experience Nokia on its acquisition of Siemens' 50% stake in their joint venture, Nokia Siemens Networks ERGO and DKV Deutsche Krankenversicherung on German, European and international insurance
regulatory and contract law issues International Chemical Investor Group on the acquisition of Clariants international detergents &
Intermediates business, the acquisition of the fine chemicals intermediates and specialty chemicals manufacturer Allessa GmbH, the acquisition of pharmaceutical ingredients activities of Tessenderlo, the acquisition of a pharmaceutical plant from Roche, the acquisition of the pharmaceutical intermediates business from Genzyme Corporation, the sale of a production facility for viscose filament yarn to India and in connection with a cross-border plant construction project
Allianz on the envisaged acquisition of a risk carrier and service companies in the health insurance sector
Munich Re on insurance supervisory and insolvency law issues
Andreas Löhdefink Frankfurt T +49.69.9711.1622 F +49.69. 9711.1100 [email protected] Education University of Freiburg University of Geneva University of Düsseldorf, Dr. iur.
Bar Admission Germany England and Wales
Languages German, English, French
International Compliance – A Local Challenge 82 29/1/2014 Tillbaka till start
Andreas Löhdefink
Recent Experience (continued) BE Aerospace on the acquisition of Interturbine Sany Heavy Industry on the acquisition of Putzmeister Qatar Holding LLC on on its investments in Volkswagen AG, Porsche Automobil Holding SE and
Hochtief AG Warburg Pincus on the acquisition of a minority stake in United Internet AG General Electric on an M&A project Silverfleet and Orizon on the corporate restructuring of the Orizon / jobs in time group Barclays Capital in connection with its fairness opinion in the public takeover of EnBW Barclays Capital as investment bank in connection with a contemplated public takeover Conergy on corporate law and corporate governance issues Sasol on German corporate law and financing issues in connection with a joint venture Arnhold and S. Bleichroeder and First Eagle Investment Management on securities trading law and
discloure issues Swiss Life on the public takeover of AWD Talanx on the acquisition of minority stakes in, and a strategic partnership with, Swiss Life, and
acquisition of a minority stake in MLP Talanx and Gerling on the sale of its Lloyd’s activities Swiss Life on the acquisition of a qualified minority stake in MLP Swiss Life on the structuring of its German business with respect to corporate and supervisory law Talanx on the acquisition of the primary insurance activities of Gerling Protektor on the acquisition of the life insurance business of Mannheimer and the establishment of the
German life insurance rescue fund International Compliance – A Local Challenge 83 29/1/2014
Tillbaka till start
Andreas Löhdefink
Recent Experience (continued) Inmet Mining Corporation on an unsolicited offer to purchase all of the outstanding common shares
of Petaquilla Minerals Ltd. Silverfleet and Orizon on corporate law issues Grass Valley on its German operations Biocartis NV regarding the worldwide sale and distribution of Molecular Diagnostics Platforms Deutsche Telekom on its merger with T-Online Implementation of leveraged employee stock programs, featuring third-party financing and
employee investment guarantees International employee stock and option plans Top five private equity firm on the attempted acquisition of a German blue chip British private equity firm on the public takeover of a German provider of precision optics and
optomechanics Various private equity firms and sovereign wealth funds on the (envisaged or completed) acquisition
of stakes in, or public takeover of, publicly listed German corporates, and the financing of such acquisitions. Clients include Warburg Pincus, Advent, Allianz Capital Partners, Apollo, Bain Capital, Candover, EQT, Goldman Sachs, KKR, Qatar Investment Authority/Qatar Holding LLC
German-based international software company on the public takeover of another German-based software company
Leading global supplier of technology and services on the public takeover of a solar energy company
German-based leading international market research group on an attempted "merger of equals" with a UK based international market research group
Car component supplier on a debt and equity restructuring International Compliance – A Local Challenge 84 29/1/2014 Tillbaka till start
Andreas Löhdefink
Recent Experience (continued) Large German publicly listed utility company in the context of the establishment of a utility
investment fund by a German bank and on the sale of participations in utilities to the fund German publicly owned bank on the establishment of a “Bad Bank” International investment bank on a cash-settled total return swap for a qualified minority stake in
a German DAX-30 company in connection with a public takeover Administrator of German entity of an insolvent international banking group with regard to financial
reporting and disclosure obligations and the delisting of securities in various European jurisdictions
International banking group on the acquisition of a German depositary bank Large German publicly listed utility company in connection with litigation regarding a minority
participation in a local utility supplier
Professional Affiliations Gesellschaftsrechtliche Vereinigung (VGR) Deutsch-Amerikanische Juristen-Vereinigung e.V. (DAJV) Deutsch-Britische Juristenvereinigung e.V. American Chamber of Commerce in Germany e.V.
International Compliance – A Local Challenge 85 29/1/2014 Tillbaka till start
Tidigare Europeiska
193 länders individuella lagar och regler • Regler • Rättsliga krav • Förväntningar om
- Licens - Produktutformning - Försäkringsomfattning - Formulering - Förmedling,klausuler, varaktighet...
Svensk lag & rätt
Input
International compliance management i ERV Sverige
Lokala marknader
analys
Etc.
Produkt
Licens
Compliance-kontroll genom hela värdekedjan
IT check
Rådgivning
Sale output
Process och output
Tillbaka till start
Presentationsmaterial från complianceseminariuimSummeringBildnummer 3Bildnummer 4Vad är skillnaden mellan �General compliance och Business compliance?Varför blir Business compliance den �”Nya Gränsen” för Corporate Travel insurance ?Nya gränsen I Nya gränsen II Nya gränsen IILåt oss diskutera med Marknaden idagCompliance�i praktiken i SEB LivAgendaBildnummer 13Bildnummer 14Förhållandet till andra funktioner�AnsvarsområdenBildnummer 17Praktiken - första tidenPraktiken – fortsättningen och nulägetSEB-koncernen och “Business Compliance”Reflektioner�AxcoABOUT AXCO THE AXCO BUSINESS MODELBildnummer 25INTERNATIONAL INSURANCE REQUIREMENTSCOMPLIANCE ABROAD CHECKLISTMarket EnvironmentMarket EnvironmentBildnummer 30Bildnummer 31What is Non Admitted?Bildnummer 33Bildnummer 34Bildnummer 35Bildnummer 36Bildnummer 37Bildnummer 38Bildnummer 39Bildnummer 40Bildnummer 41How can Axco help?Axco ProductsNon-Life INSURANCE MARKET REPORTS (IMR)Insight ComplianceAxco Compliance PointBildnummer 47Bildnummer 48International Compliance�A Local ChallengeContentPart 1How are you dealing with these guys?From the pressI. Definitions (1/2)I. Definitions (2/2)II. Overview of worldwide embargoes and sanctions (1/4)II. Overview of worldwide embargoes and sanctions (2/4) II. Overview of worldwide embargoes and sanctions (3/4) II. Overview of worldwide embargoes and sanctions (4/4) III. Example: The Iran sanction regime of the European Union (1/5)III. Example: The Iran sanction regime of the European Union (2/5)III. Example: The Iran sanction regime of the European Union (3/5)III. Example: The Iran sanction regime of the European Union (4/5)III. Example: The Iran sanction regime of the European Union (5/5)IV. Practical consequencesPart 2I. Commercial backgroundII. Typical structure of sales process and policy underwritersIII. Primary issuesIV. Violation of local law by insurance companyV. Violation of local law by insured personVI. Conflicts of law issuesVII. Selected Examples: TurkeyVIII. Selected Examples: United Arab Emirates (UAE)IX. Selected Examples: USA (1/2)IX. Selected Examples: USA (2/2)X. Selected Examples: EuropeXI. Approach of legal reviewBack-upThe Iran Sanction Regime of the European UnionCurriculum VitaeAndreas LöhdefinkAndreas LöhdefinkAndreas LöhdefinkAndreas LöhdefinkBildnummer 86