In a highly-anticipated decision on a long-running bondholder dispute, the US Court of Appeals for the Second Circuit issued its judgment last week in Marblegate Asset Management LLC v Education Management Corp. It concluded that “Section 316(b) [of the US Trust Indenture Act 1939] prohibits only non-consensual amendments to an indenture’s core payment terms”, i.e. the amount of principal and interest owed and the maturity date.

FSA has published an undertaking Legal & General has given under the Unfair Terms in Consumer Contracts Regulations (UTCCR), in relation to its home insurance policies. It held that certain critical expressions in the policy were potentially so wide that it was hard for a customer to know what was excluded. The insurer agreed to make its wording easier to understand. (Source: FSA Publishes Insurance UTCCR Undertaking)

BIS and Treasury have published their response to the consumer credit elements of the Government review of consumer credit and personal insolvency. The response explains the initiative that will ensure that over 85% of customers with personal current accounts will see clearer, fairer and more manageable charges for unarranged overdrafts. Customers will be able to get alerts when their balance is low and will not incur a fee if they exceed their limit by a small amount. Also, from late 2013 there will be guaranteed account switching within seven days.

FSA has published three consultation papers on the Retail Distribution Review (RDR). The papers cover:

 FSA has set out its standards for “key attributes” of effective resolution regimes. The standards require each jurisdiction to:

CEIOPS holds annual conference: CEIOPS has held its annual conference. The event included a panel session on Solvency II and discussion by Sharon Bowles of the new European Supervisory Authorities.