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FundSERV is being asked to provide the network for the eData project.

The eData project is CLIEDIS’ proposal to develop an industry solution to allow for straight through data processing at the AGM. The objective of the eData (New Business eData Collection and Transmission Standards) project is to find a solution for point-of-sale collection of the information related to life insurance applications and the multi-directional transmission of that data.

Both carriers and distributors are concerned about the resources and time required to create an infrastructure that addresses the security and compliance needs of all business partners. Most carriers and distributors believe FundSERVwould be able to support the transmission of data.

The discussions between CLIEDIS and FundSERV will continue over the next several weeks as issues such as costs, governance and a timeline are addressed. Further industry engagement and investigation will be required to find a solution to address the collection of that data at point-of-sale. A revised proposal will be presented to the industry in September.

– John Powell

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Iceland cuts key interest rate

Iceland’s central bank cut its key interest rate by a full percentage point to seven per cent on Wednesday after a strengthening in the krona and easing inflation.

The announcement by Sedlabanki continues the bank’s gradual lowering of the seven-day collateral lending rate as Iceland recovers from the global financial crisis.

The rate peaked at 18 per cent in October 2008, when the tiny Nordic country’s banking system collapsed under the strain of the worldwide credit squeeze.

Sedlabanki said that inflation had declined much faster than it had forecast in its May report, due in part to a stronger than anticipated exchange rate.

Inflation dropped to 4.8 per cent in July on an annual basis, down from 7.5 per cent in May.

The central bank said there are grounds for continuing to lower interest rates in the coming months, given the more benign inflation outlook, but added “it is not yet clear to what extent the recent disinflation episode reflects short-term factors.”

“The MPC stands ready to adjust the monetary stance as required to achieve its interim objective of exchange-rate stability and ensure that inflation is close to target over the medium term,” the bank said.

Analysts said that further cuts were in doubt because of a stalemate in a $5.5 billion dispute with the Netherlands and the U.K. over collapsed Internet bank Icesave that is threatenign to hold up a $5 billion aid program from the International Monetary Fund and fellow Nordic countries.

Sedlabanki also cut its deposit rate to 5.5 per cent from 6.5 per cent.

– The Associated Press

(08/18/10)