On December 3, 2012, the Securities and Exchange Commission commenced administrative proceedings against the China affiliates of the Big Four accounting firms and another large accounting firm. …
Read More Securities and Exchange Commission Seeks Audit Workpapers for Companies Whose Securities Are Publicly Traded in the U.S. and Whose Principal Operations are Based in China

The National Association of Insurance Commissioners (“NAIC”) voted to adopt a Valuation Manual (the “Manual”) at its National Meeting on December 2, 2012 in Washington D.C., setting forth a principles-based approach to life insurance company reserves (known as principles-based reserving or “PBR”).  Currently, insurance company reserves are calculated using formulas prescribed by state insurance laws and regulations. …
Read More NAIC Adopts Valuation Manual and Establishes Working Group

On November 30, 2012, the Securities Exchange Commission announced that it has filed a complaint in the Southern District of New York against China North East Petroleum Holdings Limited (“CNEP”) and a number of its current and former directors and officers (Securities and Exchange Commission v. China North East Petroleum Holdings Limited, et al., Civil Action No. 12-CV-8696 (S.D.N.Y.)).  CNEP is a Nevada corporation with principal executive offices in New York and oil drilling operations in China. …
Read More Securities and Exchange Commission Files Fraud Suit Against U.S. Public Company that was Formed as a Result of a Reverse Merger with Chinese Company

Edwards Wildman Speakers:  Joshua P. Broudy, Alexander G. Henlin

When fire or another casualty damages a commercial building, businesses may suffer financial hardship beyond lost income and costs to repair the property. …
Read More Complimentary Edwards Wildman WEBINAR: REPLAY: US Treatment of Extra Expense Claims

In Christopher Simmons v Derek Castle [2012] EWCA Civ 1288, the Court of Appeal amended the guidance given in the earlier judgment of Simmons v Castle [2012] EWCA Civ 1039 by stating that, with effect from 1 April 2013, the proper level of general damages in all civil claims for six specified heads of loss will be 10% higher than previously, unless the claimant falls within section 44(6) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (the Act). …
Read More UK: Court of Appeal Revises Guidance Regarding Level of General Damages in Civil Claims

HHS RELEASES PROPOSED RULES TO IMPLEMENT PPACA REFORMS
On November 20, the U.S. Department of Health and Human Services (HHS) issued three proposed rules to implement core provisions of the Patient Protection and Affordable Care Act (PPACA). All of the proposed rules were published in the Federal Register on November 26. …
Read More Healthcare Update: HHS Releases Proposed Rules to Implement PPACA Reforms; Number of Medicare ACOs Expected to Double

The next U.S. Under 40s Group social event will take place this Thursday evening at B Smith in midtown New York and we hope to see you there.  B Smith is located at 320 West 46th Street (between 8th Ave and 9th Ave) and the Under 40s Group will be on the second floor balcony beginning at 6:00 pm. …
Read More Join the U.S. Under 40s Group This Thursday in New York

In the Australian case of Bathurst Regional Council v Local Government Financial Services Pty Ltd (No 5) [2012] FCA 1200, the Australian Federal Court held Standard & Poor’s (S&P) to be jointly liable with ABN Amro Bank NV and Local Government Financial Services for losses suffered by 13 local councils, who had invested in complex credit derivatives that had been rated ‘AAA’ (the highest possible rating) by S&P. …
Read More Australian Court Rules Agencies Should be Held Accountable for Inaccurate Credit Ratings

In The Kittansett Club v. Philadelphia Indemnity Ins. Co., No. 11-11385 (Sept. 10, 2012), the District of Massachusetts ruled that a D&O insurer does not owe defense or indemnity to its insured when the insured had a duty prior to committing the alleged Wrongful Act to pay the amounts at issue. …
Read More District Court Finds No “Loss” Under D&O Policy When Insured Had Pre-Existing Duty to Pay For Tips in Dispute in Underlying Lawsuit

REMEDI, the Re/Insurance Mediation Institute, has released its forms  for a Mediation Clause and a Mediation Agreement for reinsurance disputes.  These documents resulted from a process that included consultation with senior industry executives active in reinsurance disputes. …
Read More REMEDI Issues Form Mediation Clause and Mediation Agreement for Reinsurance Disputes