McCreevy calls for new rules for financial market.
Dublin, Ireland – 30 September 2009
EU Commissioner Charlie McCreevy called for new rules for players in the financial market to successfully reform European financial regulation, at the 10th anniversary celebrations of Irish company Financial Risk Solutions.
“Along with the new general architecture for European financial supervision, we also need updated rules for banks, insurance undertakings, securities and other players in the financial market,” said McCreevy.
“Financial regulation needs to ensure sound prudential standards and investor protection without unduly fettering business and stifling innovation. This is a very difficult balance to strike, and the pendulum may swing too far in either direction. The outcome will never be perfect – financial markets are too complex for that. But we need to keep trying. If that means a Solvency 3 or CRD 4, 5, and 6, so be it.”
Financial Risk Solutions, FRS, is an industry leader in providing software to Life assurance companies. Founded in 1999, the Irish company celebrated ten years in business on Monday 28th September at Dublin’s Westin hotel. 120 insurance executives from across Europe gathered to celebrate the event with special guests EU Commissioner Charlie McCreevy and International Rugby ace Gordon D’Arcy.
22 life assurance companies across Europe currently use Financial Risk Solutions’ Invest|Pro™ system as their core investment administration system. Assets Under Management (AUM) on the Invest|Pro™ system across all clients account for over €50 Billion.
The Invest|Pro™ system is a unit pricing and investment accounting system designed for the life assurance industry. The system caries out daily unit pricing, investment accounting and regulatory reporting. FRS currently markets the Invest|Pro™ system to insurance companies in Europe.
“Our initial clients 10 years ago were life assurance companies established in Ireland and selling insurance cross-border under the third life directive,” explains Peter Caslin, CEO of FRS.
J Rothschild International Assurance was the first Invest|Pro™ client in 2000. After that, both cross border and domestic life companies adopted Invest|Pro™. Irish clients include Irish Life International, Aviva International, Eurizon Life, Friends First, Quinn Life, Percana group and IPSI (Irish Progressive Services International)
In 2003, ALICO became the first UK client, followed by BNP Paribas’ Cardiff Pinnacle. LCL became the first Isle of Man Invest|Pro™ user in 2006, while Accenture Insurance Services was the first Italian Invest|Pro™ user, in 2007.
FRS is an example of a company that has benefited from the single European market in the insurance industry. Following the implementation of the Third Life Directive (EC Directive 92/96/EEC) in 1992, Ireland developed a vibrant growing presence of European insurance companies who used the single passport to sell cross border from Ireland into Europe.
“Earlier this year Invest|Pro™ launched an automated trading module. We are confident this will bring significant savings to investment companies dealing in collective funds.” noted Mr. Caslin.
“The next version of Invest|Pro™, version 5, will be web based. This will allow clients expose relevant Invest|Pro™ reports and functionality to brokers, policyholders and other relevant 3rd parties. The web version will also open up a number of potential business opportunities. In particular we believe that this version of Invest|Pro™ will give clients the opportunity to examine the wrap platform business model which has proved very successful in the US, Australia, and more recently in the UK.”
“FRS serves these companies and the industry built around creating excellence in this industry is very significant indeed. In the last five years FRS has been exporting the same software that is used here in Ireland to other countries,” he adds.