NAIC Statement on U.S./UK Covered Agreement

Statement from NAIC

The NAIC is still reviewing the U.S./UK covered agreement text, but upon initial inspection it appears Treasury and USTR have mirrored the terms of the U.S./EU covered agreement and largely replicated it for the UK, consistent with our expectations.  As we have previously noted, the UK is an important market for the U.S. and is currently included in the existing U.S./EU covered agreement.  Given these unique circumstances, despite our concerns with the covered agreement mechanism, we do not object to its use in this instance to replicate consistent treatment for the UK.  Treasury and USTR have indicated that a policy statement to provide further guidance is forthcoming.  A policy statement consistent with the one released with the U.S./EU covered agreement is a critical step to protect state regulation and necessary to provide guidance and certainty to state legislatures and regulators around the country as we work to implement key provisions.