The FSA’s financial crime and intelligence sector has carried out a review of data security systems and controls in place in 39 UK companies operating across all of the different financial services sectors. The review found that many firms still under estimate the risk of data loss and fraud to their business and their customers. …
Read More UK: The Financial Services Authority (FSA) has Identified Weaknesses in the Attitude of Firms to Data Security and Threatens Sanctions

For our readers who are interested in the specific allegations contained in the recent shareholder class action complaint against Bear Stearns arising from the JPMorgan buyout, a copy is attached here.The suit, entitled Eastside Holdings, Inc. v. Bear Stearns Cos. Inc. et al., No. 08-CV-2793 (S.D.N.Y. Mar. 17,

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Read More Interested In Reading The Bear Stearns Shareholder Class Action Complaint? See Attached…

Earlier this month, shareholders filed a securities class action against Blackstone Group L.P. (“Blackstone”), its CEO and its CFO over their alleged failure to warn investors that some of the investments managed by Blackstone were performing poorly and that Blackstone was at risk of having to pay back some of its performance fees. 

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Read More Shareholders Sue Blackstone Over FGIC and Other Poorly Performing Investments

The English Court has ordered that meetings be convened on 4 July 2008 for creditors to vote on the solvent schemes of arrangement being proposed by 82 members of the E W Payne Pools. The E W Payne Pools have been in run-off for over 20 years and, it is predicted, that the run-off could last, if not for the proposed schemes, for at least another 20 years. The purpose of the schemes is to bring that run-off to an early close. …
Read More The E W Payne Pools Scheme

Scottish Coal Company and ors v. Royal and Sun Alliance Insurance plc and ors [2008] EWHC 880 (Comm) concerned a claim brought by coalmine owners against a consortium of insurance companies in respect of a roof collapse in May 2000. Liability centred on the unsuccessful attempt of the owners to mine through a roadway (or cross cut). …
Read More English High Court Finds that an Extension to a Policy was an Unequivocal Affirmation of the Contract

The Institute of Insurance Brokers (IIB) has responded to the Financial Services Authority’s (FSA) discussion paper on Transparency Disclosure and Conflicts of interest in the UK Commercial Insurance Market with major concerns (click here to view the IIB press release). 

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Read More FSA: IIB Sees Demise of Small Brokers if Commission Disclosure Becomes Mandatory

Peter Harmer, chief executive of Aon UK, is to become Chairman of the London Market Reform Group (MRG). He succeeds Stephen Matanle, managing director of Libero Ventures Ltd. 

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Read More UK: The London Market Reform Group Appoints a New Chief Executive: Peter Harmer

Competition issues within the business insurance sector have been much discussed recently. The European Commission published its final report on its inquiry into the business insurance sector on 25 September 2007. The report highlighted some questions regarding premium alignment between lead insurers and followers in the co-insurance market. …
Read More UK: Lloyd’s Reminds the Subscription Market of Their Obligation to Comply with Competition Law

Last week, the House and the Senate both passed a bill, H.R. 493/S. 358 (the “Bill”), that prohibits discrimination based on genetic testing results.  The Bill prohibits health plans and insurers from determining an applicant’s eligibility or increasing an insured’s premiums based on genetic information. 

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Read More House and Senate Pass Anti-Discrimination Bill For Genetic Testing