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This post aims to analyze the recent decision issued by the Civil Chamber of the Spanish Supreme Court dated 29 January 2019 and the impact said ruling may have in the cover offered by D&O policies in Spain. The directors and officers of a company may, as a consequence of their position, be exposed to a claim arising from a management error or negligence, breach of duty, lack of diligence or lack of supervision. This…
On 5 February 2019, the Prudential Regulation Authority (PRA) published Consultation Paper (CP) 3/19, which proposes to update Supervisory Statement (SS) 18/16 “Solvency II: longevity risk transfers” to simplify the pre-notification requirements for longevity risk transfers and update the key risks the PRA considers arise from longevity risk transfers. Since Solvency II came into effect the PRA has closely monitored longevity risk transfers to ensure that the transactions are for reasons of genuine risk…
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 to improve shareholder engagement Launch of new online portal for mutual societies EIOPA publishes its call for evidence on…
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 a Senior Manager under the Senior Managers Regime. The FCA has also made changes to the scope of…
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. Please join specialists from our financial services, regulatory investigations and enforcement and employment teams for a webinar looking at the…
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 leaves the EU, it will no longer be bound by agreements made by the EU with the U.S. and with…
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 to insurers that book significant profits in low tax jurisdictions.  Click here to read the article.…
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 a group action against the law firm Giambrone & Law.  Advised by Giambrone, hundreds of claimants paid deposits for luxury…
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 Services Contracts (Transitional and Saving Provision) (EU Exit) Regulations 2019. A draft of this regulation has been laid…
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 that consumer contracts are fair lies with senior managers. Firms will want to review their variation clauses in the light…