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FCA issues updated statement on insurers making deductions for Government support from COVID-19 business interruption settlements

Last month, the Financial Conduct Authority (“FCA”) published updated guidance regarding COVID-19 business interruption settlements and deductions made for Government support. The FCA first commented on this issue in August 2020, following reports that some insurers were making deductions for Government support received by policyholders, when calculating payments for business interruption insurance claims. The FCA’s … Continue Reading

GameStopped? Regulators react to the “short squeeze”

While trading frenzies are as old as the markets themselves, the novelty of widespread retail trading in obscure US stocks fueled by Reddit chat forums has prompted recent interventions by regulators on both sides of the Atlantic. Unfortunately the FCA’s terse 29 January statement on “recent share trading issues” gave little insight into how it … Continue Reading

BI Insurance Update – FCA publishes draft guidance on proving the presence of COVID-19

At the end of last week, the FCA announced that it had commenced a consultation exercise on a piece of draft guidance it has prepared to assist policyholders, insurers and insurance intermediaries to prove the presence or otherwise of COVID-19 in a particular area, which is a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.… Continue Reading

Court decides that litigation privilege does not apply to accountant’s reports  

The High Court has decided that a series of reports prepared by the accountants Deloitte LLP (“Deloitte”) for Sports Direct International PLC (“Sports Direct”) (now known as Frasers Group Ltd) in relation to a proposed tax structure were not prepared for the sole or dominant purpose of litigation, and were therefore not protected from disclosure … Continue Reading

Government confirms its position on insurers deducting grants from COVID-19 BI settlements

HM Treasury has responded to a letter from The Association of British Insurers (ABI), confirming the Government’s firm expectation that “grant funds intended to provide emergency support to businesses at this time of crisis are not to be deducted from business interruption insurance claims.” The ABI’s Letter Huw Edwards, Director General of the ABI, wrote … Continue Reading

FCA announces radical proposals to shake up premium pricing in GI market to improve competition for customers

We know that the regulator has long been concerned about different (and lower) premiums been offered to new customers compared to loyal customers who may not shop around for their insurances (the so called “loyalty penalty”). The FCA says that its work in the area has identified 6 million policyholders paying high or very high … Continue Reading

Win for FCA and some relief for policyholders in High Court BI insurance test case

The High Court ruled yesterday in favour of the Financial Conduct Authority (“FCA“) on what the FCA describes as the “majority of the key issues” in its test case on insurance cover for business interruption (“BI“) losses incurred during the COVID-19  pandemic and subsequent Government imposed lockdown. The decision means that insurers may now have … Continue Reading

The FCA’s Conduct Rules – The New Requirement to Report

Since 9 December 2019, the majority of FCA solo-regulated firms have been subject to the Senior Managers and Certification Regime (SM&CR) including the Conduct Rules which set basic standards of good personal conduct against which the FCA can hold people to account. As such, the rules are enforceable by the FCA and are intended ‘to … Continue Reading

Cryptoasset update: FCA report shows increased usage as HM Treasury consults on expanded financial promotions requirements

The FCA has been increasingly interested in cryptoassets as their use in the UK has grown. In October 2018, the FCA published a joint report alongside the Bank of England and the Government as part of the UK Domestic Taskforce on Cryptoassets. In March 2019, the FCA commenced research into consumer attitudes and awareness of … Continue Reading
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