In Janus Capital Group, Inc. and Janus Capital Management LLC v. First Derivative Traders, decided June 13, 2011, the Supreme Court held that Janus Capital Management LLC (JCM), a subsidiary of Janus Capital Group, Inc. (JCG) and investment advisor for JCG on a group of its mutual funds, cannot be held primarily liable in a private action by JCG shareholders for alleged false statements in a prospectus under Section 10(b) of the Securities Exchange Act of 1934 and SEC’s Rule 10b-5. …
Read More Client Advisory – Supreme Court Rules Mutual Fund Investment Advisor Not Liable for Securities Fraud in Private Securities Fraud Action

On Tuesday, June 14th, the Commodity Future Trading Commission (CFTC) announced that it would delay rules on certain derivatives rules for up to six months as they work to implement the Dodd-Frank financial reform law. …
Read More CFTC Delays Dodd-Frank Mandated Rules on Derivatives

In April this year, an interim Report of the UK’s Independent Commission on Banking recommended that large banks should be required to ring fence their retail services – including deposit taking and payment systems – and to support them with additional capital. …
Read More UK: UK Banks – Ring Fences and Firewalls

On June 28, 2011, EAPD’s Vince Vitkowsky will be chairing a Symposium in Washington D.C. on Cyber Security, National Security and Economic Security.  Speakers include representatives of the US Cyber Command and several former officials of the Department of Homeland Security. …
Read More Symposium on Cyber Security, National Security & Economic Security

A New York federal court recently held that a reinsurer, and not the court, had the authority to appoint a replacement arbitrator, even though the reinsurance agreement at issue did not specify a method to do so. …
Read More Reinsurer, and Not Court, Should Select Replacement Arbitrator

As we originally reported here, the Connecticut Legislature’s proposed bill, S.B. 11, An Act Concerning the Rate Approval Process for Certain Health Insurance Policies, if enacted, would expand the current rate approval process as administered by the Connecticut Department of Insurance for proposed increases of 10% or more for health and long-term care insurance.  The bill has recently passed both the House and the Senate in the legislative body’s third attempt to get such a bill to the governor’s desk. …
Read More Connecticut Health Insurance Rate Increase Symposia Law Passes Through Legislature to Governor’s Desk

Late last month, the Tennessee legislature passed the “Amended and Restated Tennessee Captive Insurance Act” (HB 2007/SB 1540) (the “Act”) in an effort to increase its attractiveness as a domiciliary state.  The Act amends the current law by authorizing the formation of sponsored captive insurance companies (including protected cells), branched captive insurance companies and special purpose financial captives. …
Read More Tennessee Passes Legislation to Revamp Captive Insurance Laws

A recent Business Insurance article reported that Japanese insurers have paid almost $2.27 billion to cover approximately 125,000 claims associated with earthquake damage to personal dwellings stemming from the March 11 tsunami and earthquake that devastated Japan.  According to the General Insurance Association of Japan (GIAJ), the number of claims is expected to increase as efforts continue to restore heavily damaged areas of the country. …
Read More Personal Dwelling Losses Top $2 billion in Japan

The Law Society has been granted permission to intervene in Prudential’s appeal to the Supreme Court to extend legal professional privilege (LPP) to other professionals besides lawyers. In the case of Prudential PLC and Prudential (Gibraltar) Limited v Special Commissioner of Income Tax and Phillip Pandolfo (HM Inspector of Taxes) [2009] EWHC 2494, Prudential argued that the existing rule of LLP should be extended to advice on tax law given by accountants. …
Read More UK: Law Society Granted Permission to Intervene in Legal Professional Privilege Case at Supreme Court

On June 8, 2011, Governor Andrew M. Cuomo announced the appointment of Assemblyman Jonathan Bing to serve as Special Deputy Superintendent of the New York Liquidation Bureau, an agency tasked with protecting policyholders and creditors of insurance companies that have gone bankrupt.  Bing steps in as the successor to Dennis J. Hayes, who was appointed to the position in September 2009. …
Read More Governor Cuomo Appoints Assemblyman Jonathan Bing to Head New York Liquidation Bureau