Extension of Duty of Care Owed to Employee where Audit Performed Unethically by Employer

Judge holding gavel in courtroom

The High Court has recently held in Rihan v Ernst and Young Global Ltd & Others [2020] EWHC 901 that four entities of the Ernst and Young global network (“EY“) were in breach of a duty to take reasonable steps to prevent a former EY partner, Mr Rihan, from suffering financial loss by reason of EY’s alleged failure to perform an assurance audit ethically and without professional misconduct.

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Update on FCA’s Court Action on Business Interruption Insurance Cover

On 1 May 2020, we reported on the Financial Conduct Authority (“FCA”) plans to take Court action seeking a declaration on an urgent basis to try and help resolve some of the ongoing uncertainties around the much-publicised issue of business interruption (“BI”) insurance coverage and how the insurance responds to COVID-19 related claims by insureds who have suffered ongoing BI since March.

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FCA to take Court action on business interruption insurance and proposes measures to help consumers and small businesses with insurance products

Earlier today, the FCA announced that it will ask the Court for a declaration on an urgent basis to try to help resolve the ongoing uncertainties around the much publicised issue of business interruption (“BI”) insurance coverage that we have written about in the past few weeks.

FCA

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Cheque please: Law firm sues Barclays over £2.2million PPI cheque bounce back

Judge holding gavel in courtroomPayment protection insurance (“PPI“) litigation rumbles on in the continuing matter of Ingenious Legal Ltd v Barclays Bank PLC in the High Court.

Manchester-based law firm, Ingenious Legal Ltd (“Ingenious“), which acts for customers in consumer credit cases, is suing Barclays Bank PLC (“Barclays“) for £2.2 million. This is after Barclays cancelled a cheque to refund Ingenious customers who were allegedly wrongly sold PPI amid fears about whether Ingenious legitimately represented the individuals.

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Business interrupted: the disputes begin

Battle lines are drawn up in the insurance industry as it becomes apparent that insureds and their lawyers are preparing to contest in Court any refusals by insurers to pay out on claims for business interruption (“BI”) and associated losses in the wake of the Government’s COVID-19 lockdown. Group actions are apparently being brought together and litgation funders now underwriting the legal costs of Court proceedings against insurers in the UK.

In this blog we look at just some of the legal issues likely to arise for insureds, insurers and brokers over the coming months and years as policy coverage disputes begin to increase.

Judge holding gavel in courtroom

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FCA sounds warning to financial advisers on professional indemnity insurance amidst COVID-19 pandemic

The Financial Conduct Authority (“FCA”) requires all regulated firms to take out and maintain professional indemnity insurance (“PII”) to cover the financial losses that may be suffered as a result of customer claims and complaints against the firm. The FCA also mandates limits of indemnity for the PII.

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