Global Regulation, Local Solutions Emerging Themes 2020 - Page 24



SUPERVISION
EMERGING THEMES 2020
A TICK IN ALL
THE BOXES
THE ROTHESAY DECISION:
ARE PART VII TRANSFERS
NOW RESTRICTED?
Part VII of the Financial Services and Markets Act
2000 is the mechanism by which books of insurance
policies can be transferred from one insurer to another.
Some doubt has been cast over the situations in
which this process can be utilised by the Rothesay
decision in August 2019. In this case, the High Court
blocked a proposed transfer of annuity policies by
Prudential Assurance Company Limited (“PAC”) to
Rothesay Life plc (“Rothesay”). The Independent
Expert’s view (undisputed by the regulators) that the
transfer would not have a material adverse effect on
policyholders was not enough to satisfy the Court.
However, the judge said other factors, not quantifiable
by an actuary or regulators, also had to be taken into
account. The parties have lodged an appeal.
24/
/25

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