The Financial Conduct Authority’s (“FCA“) test case on non-physical damage business interruption (“BI”) insurance has been the focal point for policyholders suffering from BI financial losses as a result of Covid-19.
Findings of the FRC’s Audit Committee research point towards audit sector reform
The Financial Reporting Council (FRC) has just published the outcome of new research into the approach that Audit Committee Chairs (ACCs) take to audit quality. The findings suggest inconsistency among ACCs on what constitutes audit quality, and how it should be approached, which the FRC says “lends weight to the proposals for reforms in the audit sector”.
BI Insurance Update – FCA publishes draft guidance on proving the presence of COVID-19
At the end of last week, the FCA announced that it had commenced a consultation exercise on a piece of draft guidance it has prepared to assist policyholders, insurers and insurance intermediaries to prove the presence or otherwise of COVID-19 in a particular area, which is a requirement of some Business Interruption (BI) policies.
FCA focus on Environmental Social Governance in product design and disclosure
The Director of Strategy at the Financial Conduct Authority (FCA), Richard Monks, recently spoke on the increasing appetite for Environmental Social Governance (ESG) focused financial products and building trust in sustainable investments.
FOS re-confirms commitment to complaints handling during pandemic
Last week, the Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS) released correspondence in which the FCA sought reassurance from the FOS in relation to how it intends to handle complaints about financial firms during the COVID-19 pandemic.
FCA confirms new timeline for consultation on duty of care for regulated firms
The FCA has just updated on the work that it had stopped or postponed in order to allow it to focus on the more urgent work that has been required of the regulator as a result of the Covid-19 pandemic and the resultant economic turmoil.
High Court holds insurer is unable to aggregate claims related to theft under PI insurance policy
In the recent decision of Baines v Dixon Coles and Gill (A Firm) and others [2020] EWHC 2809, the High Court held that claims against a firm of solicitors regarding the theft of client funds by a former partner, could not be aggregated by the professional indemnity (PI) insurer.
Money transfer for specific purpose – High Court ruling on Quistclose Trusts
In the recent case of Patel v Barlow’s Solicitors and others [2020] 2753 (Ch) the High Court found that a Quistclose Trust arose in a situation where solicitors were forwarded monies by a third party for a specific purpose.
FCA reminds firms to review value of their insurance products in light of impact of COVID-19
The FCA has just released a statement reminding insurance firms of the guidance that it published back in June, which set out its expectations for insurers and insurance intermediaries to consider the value of their products in light of the exceptional circumstances arising from the pandemic.
BI insurance appeal to be heard by Supreme Court on 16 November 2020
Last night the FCA announced that the Supreme Court had granted permission to appeal the High Court’s judgment in the business interruption (“BI”) insurance test case to all those who had applied for that permission.
