Insurance Company – Risk Management Currency Risk: Cover for Spot and Forward Currency Transactions

Application provision

1.1 Unless otherwise stated, this Part applies to;

  1. (1) a non-directive insurer, other than a non-directive friendly society; and
  2. (2) subject to 1.2, a Swiss general insurer.

2.1

01/01/2016

A firm must cover a contract providing for the purchase or sale of foreign currency by:

  1. (1) holding the currency that must be paid by the firm under the contract; or
  2. (2) being subject to an offsetting transaction.