Status: Draft -- Not PublishedWill be live at 01/22/2020 10:18
IIF Response to IAIS Consultation on Liquidity Risk Management
The IIF has responded to the IAIS Application Paper on Liquidity Risk Management, which was released for public consultation on November 19, 2019. Among other recommendations, the IIF encouraged the IAIS to adopt a flexible and proportionate approach that recognizes the varying nature of liquidity risk across companies and jurisdictions, differences in corporate structure and differences in the degree of centralization of liquidity risk management across insurers. We also cautioned against the adoption of prescriptive or “hard-wired” metrics or restrictions on assets includable in a liquidity portfolio, as these could have negative macroprudential ramifications such as asset hoarding or give rise to inappropriate incentives such as the development of asset concentrations.