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In a closely-watched case stemming from the demise of the Australian HIH insurance group,  the UK House of Lords has ruled in McGrath & Anor & Others v Riddell and Others [2008] UKHL 21 that the English assets of four companies in that group, which are in liquidation in Australia and in ancillary insolvency proceedings in England, must be remitted to Australia for distribution under Australian insolvency law. 

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Read More UK House of Lords’ Ruling Assists Foreign Liquidators

In Tyco Fire & Integrated Solutions (UK) Ltd v Rolls-Royce Motor Cars Ltd [2008] EWCA Civ 286, Tyco had negligently caused damage to a Rolls-Royce plant during the course of constructing a sprinkler system. Tyco admitted negligence but claimed that it was not liable for the damage because Rolls-Royce was obliged, by virtue of a provision in the construction contract, to take out joint insurance indemnifying the parties in respect of Specified Perils, which included the said damage. 

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Read More The English Court of Appeal Construes the Meaning of a Clause for Joint Insurance in a Construction Contract

On 25 March Lloyd’s issued Market Bulletin Y4139 (the Bulletin) providing additional guidance for the preparation of the 2009 individual capital adequacy (ICA) submissions for run-off and specialist RITC syndicates. The guidance should be read in conjunction with Market Bulletin Y4128 (the Guidance), issued on 29 February, which sets out the general guidance for 2009 ICA submissions to Lloyd’s. 

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Read More Lloyd’s Guidance for Run-off and RITC Syndicates

The Financial Services Authority (FSA) has published a consultation paper (CP 08/6**) in respect of a review of the provisions of the Client Assets Sourcebook (CASS). Following implementation of the Markets in Financial Instruments Directive (MiFID) on 1 November 2007, CASS was expanded from five to eight chapters and two separate regimes apply depending on whether firms conduct MiFID and/or non-MiFID business. …
Read More FSA Consultation: The Client Assets Sourcebook

On 26 March,  the Financial Services Authority (FSA) published a summary of a review carried out by its internal audit division into its supervision of Northern Rock. The Chief Executive of the FSA admitted that the supervision of Northern Rock in the period leading up to the market instability of late last summer was not carried out to an acceptable standard. 

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Read More UK: FSA Moves to Enhance Supervision in Wake of Northern Rock

Since the Spitzer enquiries into broker commissions in the US in 2004/5, the issues of whether to make commission dislcosure mandatory and whether further regulation is required in respect of conflicts of interest have never really been far from the Financial Services Authority’s (FSA) radar. The market strived to find a solution that would deter the FSA from introducing yet more regulation but has failed, thus far, to find a commonly accepted solution as market views are polarised. …
Read More UK: Could Mandatory Disclosure of Broker Commissions be on the Cards?

The Financial Services Authority (FSA) has published a new guidance note entitled ICOBS at a glance. This brief document highlights the new conduct of business rules for insurers and provides a brief summary of the main requirements of the new Insurance: Conduct of Business sourcebook (ICOBS), with the aim of assisting insurance companies and intermediaries in the UK, who have 3 months left in which to ensure that their processes and policies meet the new standards. …
Read More ICOBS at a Glance: Highlights of the New Rules

Brit Syndicates Ltd v Grant Thornton International UKHL 18 concerned an appeal by the insured, GTI, against a Court of Appeal decision in favour of its insurers. …
Read More The UK House of Lords has overturned a Court of Appeal decision as to whether the avoidance of a composite policy in respect of one party negates another party’s cover