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Posted in Regulatory and legislative updates, UK

UK: Corporate Insurance Newsletter – January 2019

The Hogan Lovells’ Corporate Insurance Newsletter for January has been published.  This provides a round-up of UK, EU and international regulatory developments relevant to UK based insurance market participants.  In this issue, amongst other items, we cover: Latest Brexit related consultation papers and other material from the HM Treasury, PRA and FCA FCA consultation on proposals

Posted in UK

The FCA consults on amendments to the SMCR: Excludes Head of Legal from the Senior Managers Regime and clarifies the scope of the Certification Regime

On 23 January 2019, the Financial Conduct Authority (FCA) published a consultation paper (CP19/4) on optimising the Senior Managers and Certification Regime (SMCR). This paper consults on a range of proposed amendments and clarifications to the regime. In particular, the FCA has proposed excluding the Head of Legal from the requirement to be approved as

Posted in Regulatory and legislative updates, UK

Webinar: Countdown to SMCR: What intermediaries need to know

The FCA has confirmed that the Senior Managers & Certification Regime (SMCR) will cover all regulated financial firms (including any insurance intermediaries in insurance groups) from 9 December 2019. The new regime will impact nearly all staff within financial services organisations, and firms need to consider how they should be preparing for the change ahead.

Posted in Regulatory and legislative updates, UK

Brexit planning: The UK enters into agreements with the U.S. and Switzerland to replicate existing agreements

Introduction On 18 December 2018 the UK and the U.S. signed an agreement on the prudential supervision of insurance and reinsurance companies. Shortly thereafter, on 25 January 2019, HM Treasury announced that it had signed an agreement with Switzerland on direct insurance. These agreements form part of the UK Government’s Brexit preparations: after the UK

Posted in Regulatory and legislative updates, UK

UK: HMRC introduces Profits Diversion Compliance Facility

Our tax team recently published an article about the introduction of a new Profits Division Compliance Facility by HM Revenue & Customs.  This is an opportunity for multinationals, including insurers, active in the UK to initiate a discussion with HMRC on how they allocate their profits across jurisdictions for tax purposes.  It is particularly relevant

Posted in Case reports, UK

UK: Make him a costs order he can’t refuse: Indemnity insurer must pay costs of negligently advised purchasers in Mafia-linked property development

On 11 January 2019, the High Court handed down its judgment in Various Claimants v Giambrone & Law (A Firm) & Others, AIG (Europe) Limited [2019] EWHC 34 (QB)), finding that AIG is liable for claimants’ costs pursuant to a non-party costs order under section 51 of the Senior Courts Act 1981. Background Giambrone concerns

Posted in European Union, Regulatory and legislative updates, UK

No-deal Brexit and contractual continuity

On 8 January 2019 the FCA published a consultation paper, CP19/2, which sets out details of the financial services contracts regime (FSCR) and the rules the FCA proposes should apply to firms during the regime.  The consultation closes on 29 January 2019. The legislative bones of the regime are set out in the draft Financial

Posted in Regulatory and legislative updates, UK

UK: FCA finalised guidance on fairness of variation terms in financial services consumer contracts

The FCA published its finalised guidance on the fairness of variation terms in financial services consumer contracts under the Consumer Rights Act 2015 on 19 December 2018. While there weren’t many substantial changes from the FCA’s draft guidance, a number of helpful clarifications were made. Importantly, the FCA has emphasised that the responsibility for ensuring

Posted in European Union, Market developments, Regulatory and legislative updates, UK

UK: Corporate Insurance Newsletter – December 2018

The Hogan Lovells’ Corporate Insurance Newsletter for December has been published.  This provides a round-up of UK, EU and international regulatory developments relevant to UK based insurance market participants.  In this issue, amongst other items, we cover: Latest Brexit related consultation papers and other material from the HM Treasury, PRA and FCA  Regulation of claims

Posted in Regulatory and legislative updates, UK

UK: Latest on Credit Risk Mitigation

On 10 January 2019, the Prudential Regulation Authority released Consultation Paper (CP) 1/19, setting out certain proposed changes to Supervisory Statement (SS) 17/13 “Credit risk mitigation”. SS 17/13 was produced to provide clarification on the PRA’s expectations with respect to the recognition of credit risk mitigation in the calculation of certain risk-weighted exposure amounts. The

Posted in European Union, Regulatory and legislative updates, UK

No-deal Brexit: new publications from HM Treasury and the FCA

HM Treasury published guidance on 8 January 2019 for financial services institutions in a no-deal Brexit situation, updating HM Treasury’s 23 August 2018 technical notice on the financial services regulatory framework in the event of a no-deal Brexit. The guidance is limited to advising UK and EEA firms to take steps to ensure continuity of

Posted in European Union, Regulatory and legislative updates, UK, Uncategorized

No-deal Brexit: reorganisation and winding up of insurers

Introduction As part of its planning for a no-deal Brexit, on 30 November HM Treasury published a draft of the Credit Institutions and Insurance Undertakings Reorganisation and Winding Up (Amendment) (EU Exit) Regulations 2018 (the “Draft Regulations“), which have been laid before Parliament, along with explanatory information. The Draft Regulations will take effect on exit

Posted in European Union, Regulatory and legislative updates, UK

Draft Insurance Distribution (Amendment) (EU Exit) Regulations 2019 published by HM Treasury: Brexit SI

On 21 November 2018, HM Treasury published a draft version of the Insurance Distribution (Amendment) (EU Exit) Regulations 2019, together with an explanatory information document. The purpose of the Regulations is to correct deficiencies in retained EU law relating to the Insurance Distribution Directive ((EU) 2016/97) (IDD) that arise from the UK leaving the EU,

Posted in European Union, Regulatory and legislative updates, UK

“No deal” Brexit: UK Government publishes details on draft regulations amending FSMA

On 22 November 2018, HM Treasury published Explanatory Information on the draft Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (the “Draft FSMA Regulations“). The Draft FSMA Regulations will make amendments to the Financial Services and Markets Act 2000 (“FSMA“) and related legislation to ensure that the UK’s financial services framework continues

Posted in European Union, Regulatory and legislative updates, UK

UK regulators prepare for ‘No Deal Brexit’ with a Temporary Permissions Regime

HM Treasury has proposed a Temporary Permissions Regime (“TPR“) as a temporary measure to replace the passporting regime in Schedule 3 and 4 of the Financial Services and Markets Act 2000 (“FSMA“) in the event of a no-deal Brexit. The legislative framework for the TPR is found in the EEA Passport Rights (Amendment, etc., and

Posted in Regulatory and legislative updates, UK

UK: PPI Update – November 2018

FCA publishes final guidance on regular premium PPI complaints and new consultation on mailing rules On 7 November 2018, the FCA released a consultation paper (CP18/33) publishing final guidance clarifying its expectations about the handling of mis-selling complaints relating to regular premium PPI, and proposing new mailing rules requiring firms to write to previously rejected

Posted in Regulatory and legislative updates, UK

UK: Corporate Insurance Newsletter – October 2018

The Hogan Lovells’ Corporate Insurance Newsletter for October has been published.  This provides a round-up of UK, EU and international regulatory developments relevant to UK based insurance market participants.  In this issue, amongst other items, we cover: Latest Brexit related consultation papers and other material from the Bank of England, PRA and FCA The FCA

Posted in Regulatory and legislative updates, UK

UK: FCA publishes PPI complaints deadline progress report

On 24 October 2018, the FCA published a report on the progress of its consumer communications campaign on PPI mis-selling (the “CCC”) and its supervision of the manner in which firms are handling PPI complaints. The progress report is the latest of a series of publications from the FCA on PPI mis-selling following the Supreme

Posted in European Union, Regulatory and legislative updates, UK

The time is now: EIOPA calls for action to ensure service continuity in cross-border insurance

Following its Opinion on 21 December 2017, the European Insurance and Occupational Pensions Authority (EIOPA), yesterday (5th November) issued a call to action to ensure service continuity in cross-border insurance. In the December 2017 Opinion, EIOPA urged insurance undertakings and regulators to take the necessary steps in good time to ensure the continuity of cross-border

Posted in Market developments, Regulatory and legislative updates, UK

Webinar – Recent developments in Part VII transfers and schemes of arrangement for insurers

Part VII transfers continue to be an important tool for both M&A and group reorganisations in the insurance industry, not least because of Brexit. In addition, there is an increasing interest in the use of schemes of arrangement to restructure insurance businesses. Click here to read more and to register for the Webinar.

Posted in European Union, Regulatory and legislative updates, UK

No deal Brexit – Government publishes advice on vehicle insurance

On 24 September 2018, the Government published a technical notice on vehicle insurance if there is no Brexit deal. The current position Motorists from non-EU countries driving in the EU must have a Green Card, an internationally recognised certificate issued by their motor insurer as proof that they have third party motor insurance cover for

Posted in Case reports, UK

UK: Sanctions exclusion clauses: What can we learn from Mamancochet Mining Limited v Aegis Managing Agency Limited and Others [2018] EWHC 2643 (Comm)?

On 12 October 2018 the High Court handed down judgment in a case that concerned a claim brought against insurers for payment under a marine cargo policy relating to the theft of steel billets from an Iranian port in late 2012. The 11 defendant underwriters sought to rely on a London standard insurance market sanctions

Posted in Regulatory and legislative updates, UK

UK: The FCA consults on new SM&CR guidance on statements of responsibilities and responsibilities maps

On 11 October 2018, the FCA published a guidance consultation for FCA-authorised firms on preparing statements of responsibilities and responsibilities maps under the Senior Managers and Certification Regime (SM&CR). Under the SM&CR, which will apply to all FCA authorised firms from 9 December 2019, firms will be required to prepare statements of responsibilities for each