Corporate insurance and financial services
Misselling liabilities under portfolio transfers
In 2006, a transferor and transferee entered into a portfolio transfer under Part VII of FSMA in respect of all of the transferor's general insurance business.
Read morePrivate Equity Acquisitions - Asset Stripping Rules
It is almost a year since the Alternative Investment Fund Managers Directive (AIFMD) became fully effective in the UK.
Read moreClaims handling review could lead to past business reviews
The FCA's report on its thematic review into claims handling in the SME market highlights shortcomings but with reassuringly little sabre rattling.
Read moreFCA finds shortcomings in premium finance services to insurance market
The FCA published earlier this week its thematic review report on the provision of premium finance to retail general insurance customers.
Read moreDiverted Profit Tax - captive insurers
Following on from our earlier blog, the HMRC has published interim draft guidance which expands on how the Diverted Profit Tax (DPT) may apply to insurance arrangements, including a number of sector-specific scenarios.
Read moreBudget 2015 - impact on insurance
George Osborne's announcement on Wednesday set out at least two areas of potential impact for the insurance industry.
Read moreFCA prepares for Consumer Rights Act
The FCA last week removed much of its unfair contract terms guidance and a number of undertakings (mainly relating to the mortgage and investment sectors) from its unfair contract terms library, citing the need to update them in light of, amongst other things, the unfair contract terms provisions in the Consumer Rights Bill and the CMA's 2015 guidance consultation on those provisions.
Read moreSenior insurance managers regime – proposals for NEDs
Last year, we reported on proposals for a new senior insurance managers' regime ('Senior insurance managers - all change!').
Read moreUK VAT changes following Skandia decision
On Tuesday this week, HMRC confirmed a change to the UK VAT treatment of intra-entity supplies of services, from 1 January 2016.
Read morePortfolio Transfers in 2015 - PRA Update
On Wednesday, the PRA set out its approach to Part VII transfers for insurance business for the rest of 2015.
Read moreAnnual insurance review
I am happy to inaugurate the Corporate Insurance Hub for 2015 with RPC's annual round-up of the key legal developments in 2014. I trust you find this useful, and we look forward to keeping you informed throughout the year.
Read moreSenior insurer managers – all change!
The Prudential Regulation Authority (PRA) has recently announced proposals for a new regime for "senior insurance managers", designed to reflect Solvency II governance requirements.
Read moreEnsuring the end of terror?
Last week, the Counter-Terrorism and Security Bill was published, so providing the detail behind Theresa May's bid to outlaw insurers from indemnifying ransom payments to terrorists.
Read moreBroker M&A –how far does your indemnity go?
A recent case in the High Court has demonstrated how a court may construe a contractual indemnity in the context of broker M&A.
Read moreIn the Garden without Pay
Sunrise Brokers LLP v Rodgers is the salutary tale of a broker who gambled in his decision to leave his employer for a competitor.
Read moreLimits on the VAT exemption for insurance intermediaries
A recent Tax Tribunal decision highlights the limits of the VAT exemption for supplies by an insurance intermediary.
Read moreInsurance contract law reform – a reinsurance angle
In Spring 2015, the Insurance Bill, which applies to business insurance and thereby reinsurance, is likely to be given royal assent.
Read moreRoot and branch changes to EU VAT rules on intra-entity supplies?
The European Court of Justice (ECJ) last week ruled that services provided by a US insurer to its Swedish branch were subject to VAT in Sweden. This widely reported decision is likely to have implications for insurers and other financial services groups across Europe.
Read moreCMA brings car competition probe to conclusion
The Competition and Markets Authority (CMA) – the UK's leading consumer and competition authority – yesterday published measures which it expects will increase competition and reduce premiums in the car insurance market.
Read moreGood or bad news on the flood insurance front?
Increasingly severe flood events, climate change, new housing in flood plains, inadequate government spending on flood defences – these all point to increasing risk of flooding for more and more properties.
Read moreDividends under Solvency II
As you will be aware, Solvency II will impose requirements as to the quality of the capital held by a firm. Core tier 1 capital is the best, and will typically be made up by ordinary share capital.
Read moreFCA fines general insurer £8.4m for TCF and Conduct Risk failings
The FCA's latest enforcement action in the general insurance sector is a useful source of conduct risk guidance and a reminder that firms cannot delegate their regulatory responsibilities to outsourced service providers, not even to those that are themselves FCA authorised.
Read moreTransfer of corporate profits – update
Earlier in the year I posted a blog on the proposed new anti-avoidance measure, targeted at so-called "profit transfers" from one group company to another.
Read moreABI proposals on home and motor insurance renewal pricing
The ABI has recently announced that it has written to the FCA setting out its proposals to improve transparency and clarity for customers when renewing their motor and home insurance policies.
Read moreHong Kong: broker commission – proposed rules of conduct
A key provision of the Insurance Companies (Amendment) Bill 2014 is the formation of an independent Insurance Authority (IA) to take over from the Office of the Commissioner of Insurance.
Read moreKnow your regulator
The importance of good relations with regulators has never been more important.
Read moreNew anti-avoidance rule targeting transfers of corporate profits
This year's Finance Bill, which is expected to become law as the Finance Act 2014 in July, introduces a new anti-avoidance measure targeted at businesses operating through a group structure where there is in substance a significant "payment" of profits from one company to another.
Read moreThe PRA's Stance on Solvent Schemes of Arrangement & Omnibus II
The Omnibus II directive, which amends the text of the Level 1 Solvency II directive, was finally agreed in March 2014.
Read moreFCA findings on conflicts management in the commercial SME sector: encouraging, but only the start?
The most surprising thing about today's FCA report on its conflicts of interest review in commercial insurance is the number of SMEs who arrange insurance through an intermediary.
Read moreBroker conflicts: thematic review– what can we expect?
The FCA will on 27 May 2014 be publishing its findings from its thematic review of broker conflicts of interest and remuneration in the UK SME general insurance sector. We will report on the review as soon as possible after publication.
Read moreProduct trade mark registrations on the up as firms fight back from the bottom of the financial crisis
As the sector fights back from the financial crisis, firms are starting to launch new products, investing heavily in intellectual property protections and differentiating their products through branding.
Read moreNew Regulators' Code
As my colleague Sam Bishop has commented on our Financial Services Blog, the new Regulators' Code imposed by the government in April may have a marked impact on the direction of the FCA and PRA's regulatory approach, and in particular on the importance of economic growth.
Read moreFCA 'game changer' set to discipline add-on markets
The FCA has published its third Occasional Paper describing the new experimental approach it took in its add-ons market study, where for the first time it used behavioural economics to assess how selling insurance as an add-on affects consumer decisions. This raises key implications for insurers.
Read moreFCA Business Plan 2014/15 and what it means for the general insurance market
Fewer than 8 lines into the FCA's Business Plan for 2014/15, Martin Wheatley reminds us of just some of the regulator's work over the past year. Interest only mortgages, add on insurance, introductory rates of interest on accounts. He goes on to say "there must be no let up to the pace of our activities for 2014/15."
Read moreA continuation on a thematic review: insurance broker fined for ABC systems failings
Such is the seeming regularity with which insurance brokers face censure from the FCA for failings in their anti-bribery and corruption systems and controls that the £315,000 fine dished out to Besso Limited this week may not be considered by some as blog-worthy (particularly when that blog is introduced with such an awful pun).
Read moreFCA's first market study finds little value-add in uncompetitive insurance add-ons market
The FCA is proposing to make dramatic changes to the £1 billion insurance add-ons market in order to protect consumers, according to its market study report released yesterday.
Read moreScottish integration?
In December we commented on the regulatory position of Scottish insurers post-independence (should this come to pass).
Read moreTTIP of the iceberg - EU/US trade negotiations
How will the Transatlantic Trade and Investment Partnership (TTIP) - currently being negotiated between the EU and the US - impact on the insurance market?
Read moreTop tips - internal investigations
The ability to conduct and manage an internal investigation in a way which is proportionate to the issue which has arisen as well as timely and cost effective is a skill not to be under-estimated.
Read moreThe Principle of Fundamental Rule
God ordered the world with 10 commandments, the FSA thought it would take 11 Principles and, perhaps in a statement of its omnipotence, the PRA has taken on the challenge with just 9 "Fundamental Rules".
Read moreBasel III – insurance as a risk mitigant?
RPC's banking team recently attended the Loan Market Association's (LMA's) seminar on "Mitigating Risk – Insurance as a Risk Mitigant" which focussed on whether insurance could be used by banks for the purpose of securing capital relief under Basel III.
Read moreConsumer credit reform – impact for insurers and brokers
From 1 April 2014, the FCA will take over responsibility from the OFT for the policing of the UK consumer credit industry.
Read moreWelcome to the Corporate Insurance Hub
Here you'll find commentary on the latest developments in the Insurance industry, whether it's consolidation in the market, new legislation or landmark court decisions.
Read moreComplaints-led regulation of general insurance – FOS' increasing role
The nature of annual insurance policies makes the GI market ripe for complaints-led regulation.
Read moreScottish Independence?
The Scottish National Party (SNP) has formally issued its proposals for an independent Scotland.
Read moreFinancial Transaction Tax – still a cause for concern?
The FTT was due to take effect from 1 January 2014. In June the European Commission quietly announced a delay of at least 6 months.
Read moreSolvency II – the Phoney War
The Guidelines on Governance released by EIOPA on 27 September 2013 set out EIOPA's view on what insurers should be doing in advance of (and in preparation for) the implementation of Solvency II.
Read moreHandbook suffers from CIDRA hangover
Whilst FOS rightly considered itself ahead of the consumer insurance law reforms, the FCA has now caught up.
Read moreThe FCA – a "very different animal", that bites harder
Two notable recent fines, £2.8m levied against Policy Administration Services for poor complaints handling in relation to mobile phone insurance and £7.38m levied against Swinton for aggressive selling of add-on insurance, have a key common feature.
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