b'TABLE OF CONTENTSINSURANCE REGULATORYUK /BR E XITBrexitThe United Kingdom has withdrawn from the European Union (EU) as of December 31, 2020. The Temporary Permissions Regime, which was put in place by the PRA and FCA to aid the transition of European insurers operating in the UK requiring new authorizations, will continue for the next two years. To address some of the complexity of regulatory compliance and rule making arising from the Brexit on-shoring of financial services regulation into legislation rather than the PRA and FCA Handbooks, the government published a paper in 2021 on the Future Regulatory Framework (FRF) in the UK. The consultation period on FRF closes in February 2022. The FRF was established to determine how the financial services regulatory framework should adapt to the UKs new position outside of the EU, and how to ensure the framework is fit for the future. In particular, the FRF Review provides an important opportunity to ensure that the UK maintains a coherent, agile and internationally-respected approach to financial services regulation that delivers appropriate protections and promotes financial stability.In particular, the government is keen to further expand the setting of regulatory standards to the PRA and FCA, which have the subject matter expertise in financial regulation which the UK parliament lacks. The government believes that this will ensure that the regulators real-world, day-to-day experience of supervising financial services firms is central to the regulatory policymaking process. This is a welcome development for insurers managing on-shored UK versions of European legislation, regulatory technical standards and guidelines alongside their existing requirements in the FCA and PRA Handbooks. Regulatory divergence with Europe will be a continuing theme as the UK proceeds with its proposed reforms to Solvency II, consumer duty of care and other insurance regulatory developments. MAYER BROWN |103'