October 2017

INSURE

InSure

This month's roundup of developments affecting the insurance industry sees ECON calling on the European Commission to postpone the application date of the IDD, EIOPA issuing final guidelines on complex insurance-based investment products under the IDD and the European Commission releasing a report on consumers' decision-making process in insurance services.

General Update

In a recent case, BTI 2014 LLC v Sequana SA & others, the High Court was asked to consider the circumstances in which the directors of a company are required to consider the interests of creditors and the extent to which the payment of a dividend by a company can be susceptible to challenge under section 423 of the Insolvency Act 1986 (IA 1986).

Frustration amongst creditors of struggling UK law firms continues to grow.  Administrators of Challinors have concluded that the partnership's unsecured creditors, owed approximately £7.1m, are likely to receive nothing.  Meanwhile the Solicitors Regulation Authority (SRA) has advised 141 firms that they must prepare to shut-down following their failure to obtain professional indemnity cover.  These firms are currently in the middle of a 60 day cessation period during which they may remain in business, but cannot accept any new instructions.  While some have blamed the

Reports have estimated that 1,300 UK law firms have been put at risk after Latvian insurer Balva was put into liquidation. Initially Latvian Board of Financial and Capital Market Commission (FCMC) insisted there was no cause for concern as all Balva’s insurance policies would remain effective and be transferred to its replacement underwriter, Berliner. However, when Berliner pulled the pin, declining to cover the Balva policies, panic hit the UK legal market. Berliner's exit was described by one broker as the “biggest hand grenade into [the] bottom end of the market for many years.”

Judgment date: 28 June 2013

Solicitor struck off for disgraceful conduct unconnected to professional duties

M, a solicitor, was struck off the Roll of Solicitors by the Solicitor’s Disciplinary Tribunal (the Tribunal) following a finding that he was guilty of disgraceful conduct.

Over recent years I have been astounded that certain professionals, including accountants, insolvency practitioners (IPs) and solicitors, appear unable to recognise a conflict of interest if it were to stand up and slap them in the face.

Cynically, one could suggest that the blinkers have been on because it serves the interests of the professional concerned. Ignoring a conflict of interest is a fundamental breach of professional ethics, not something that can be brushed under the table for pure personal financial gain.