The Hong Kong Securities and Futures Commission (“SFC”) recently issued a circular clarifying that insurers, corporate insurance brokers and individual insurance intermediaries are not required or permitted to be licensed by the SFC under the provisions of the Securities and Futures Ordinance (“SFO”) (Chapter 571 of the Laws of Hong Kong) to engage in promoting, offering or selling investment linked assurance schemes (“ILAS”) to the Hong Kong public (the “Circular”). …
Read More HK: SFC Clarifies the Licensing Requirements for the Promotion, Offering or Sale of Investment Linked Assurance Schemes to the Public

Judgment in the case of Equitas v R&Q Reinsurance (Brandywine) is expected to be handed down later this month.  In this case, Equitas is attempting to establish R&Q’s liability for a sample of more than 4,000 LMX spiral claims arising out of Kuwait Airways losses during the first Gulf war and the Exxon Valdez oil spill. …
Read More UK: LMX Spiral Claims – Key Judgment Imminent

On 1 October 2009 the Bermuda Monetary Authority (BMA) published three market communications outlining proposals on a variety of developments to its regulatory framework. Initially the proposals are only intended to apply to Class 4 and Class 3B insurers and reinsurers due to their high risk profiles. …
Read More Bermuda: The Bermuda Monetary Authority Publishes Market Communications on its Regulatory Framework

In Secretary of State for Transport v Stagecoach South Western Trains Ltd [2009] EWHC 2431, the High Court decided that a dispute over the method of calculation of future payments under a franchise agreement came within the relevant arbitration clause. 

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Read More UK: Arbitration Clause Covers Disputes About Future Claims

The House Financial Services Committee is set to begin consideration of several bills that are key to achieving financial regulatory reform.  Financial Services Chairman Barney Frank (D-MA) will convene a full committee markup on October 14, and is prepared for the session to span the course of multiple days, if necessary. …
Read More Financial Regulatory Reform Update

The High Court’s decision in R&R Development Ltd v AXA Insurance UK Plc [2009] EWHC 2424 (Ch) concerned the issue of whether ambiguous questions in a proposal form for a contract of insurance could be construed by following the Contra Proferentem principle without the need for the court to decide upon the correct interpretation of the questions. 

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Read More UK: Contra Proferentem Principle Applies to Ambiguous Questions in Proposal Form