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

Several members of the U.S. House of Representatives sent a letter to Department of Treasury Secretary Henry Paulson on March 13, 2008, requesting the Department of Treasury provide clear regulations outlining the application of the Foreign Investment and National Security Act (“FINSA”) on foreign investment in domestically owned companies. 

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Read More House Representatives Request Clarifications to FINSA Application in Treasury Department Regulations

Insurance companies are often stakeholders in interpleader actions.  EAPD’s Vince Vitkowsky has recorded a podcast for a public policy group analyzing the issues presented by the pending U.S. Supreme Court case, Philippines v. Pimentel, which was argued on March 17, 2008. The case arises from an interpleader action commenced by Merrill Lynch concerning an account containing assets deposited by the late President of the Philippines, Ferdinand Marcos. 

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Read More Supreme Court Hears Argument in International Interpleader Action

The Canadian federal government has charged a panel of experts with investigating possibilities for significant securities regulation reform.  Notably, the panel has been asked to “develop a model common securities act,” according to a press release issued by the Honourable Jim Flaherty, the Canadian Minister of Finance. 

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Read More Canada Considers Nationwide Securities Regulation Reform

As previously reported here, on September 10, 2007,  the New Jersey legislature enacted P.L. 2007, c. 163 (S-1666/A-3038), which banned the use of step-down provisions.  Step-down provisions were included in motor vehicle liability insurance policies issued to businesses and implicated when an employee is not a “named insured” on the policy. 

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Read More Effective Date of New Jersey Ban on Step-Down Provisions

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?

Oregon’s highest court recently found that a $20.7 million dollar punitive damages award in an insurance bad faith case, which was approximately sixteen times the actual damages awarded in the case, was excessive and likely unconstitutional. 

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Read More Oregon Supreme Court: Punitive Damages in Insurance Bad Faith Case Limited to Four Times Actual Damages

A Massachusetts state trial court recently ruled that, even though an insured’s contractual coverage claim against its insurer was time-barred, its claim for insurer bad faith could proceed under a separate statutory limitations period. 

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Read More Massachusetts State Court: Insured May Proceed With Bad Faith Claim Even Though Statute of Limitations On Breach of Contract Claim Has Run