In the matter of QBE Insurance (Europe) Ltd 15/11/18 (Ch)

The court emphasised the importance of the regulators’ role in the transfer of insurance business under Part VII of the Financial Services and Markets Act 2000. The court noted that it was not relevant to the independent expert’s consideration that the policyholders of the acquiring insurer would still have access to the Financial Services Compensation Scheme. The FCA had not considered the question of additional risks on the basis that was a matter for the PRA as the prudential regulator, but stated that they approved the form of the independent report. The regulators should make a clear statement as the potential for material adverse impact on policyholders of a proposed transfer identifying who had considered what and to what standard so that the court would know whether the conclusions of the independent expert had been reviewed and whether they were supported.