Insurance briefing is a round-up of legal and business developments published on Out-Law.com.
The main topics we're focusing on this week are:
European ministers back delay to Insurance Distribution Directive
The European Council has backed a proposal to delay the introduction of new laws on the distribution of insurance products until October 2018. However, members of the European parliament (MEPs) are not expected to vote on the draft directive setting out the new deadline until March, after the existing February deadline. For that reason, although it is likely that there will be a delay to the application date of the IDD, the final position for firms is not yet entirely certain, according to insurance law expert Edward Lister of Pinsent Masons, the law firm behind Out-Law.com.
Insurer had no fixed establishment in UK for VAT, says Tax Tribunal
A Gibraltar based insurance underwriter which supplied insurance to UK customers through a UK based broker, did not have a fixed establishment in the UK for VAT purposes, the First Tier Tribunal has decided, in a case involving Hastings Insurance. Hastings provided broking, underwriting support and claims handling services to Advantage, an associated company which was based in Gibraltar. Advantage underwrote UK car and motorcycle insurance, supplying insurance to UK customers through Hastings.
Court of Appeal: broadly-worded settlement clause precluded later claim for negligence
A broadly-worded settlement clause between a London law firm which sued its former client for unpaid fees was sufficient to prevent a later claim for negligence, the Court of Appeal has confirmed. The claim, brought on behalf of a Russian oil firm which is now in liquidation, "entirely overlaps with and is dependent on the allegedly defective performance of the very services for which Forsters [the firm] were claiming payment", according to judge Lord Justice Lewison.
PCP car finance deals could become a new mis-selling scandal
Banks and insurers could be exposed to the same type of risks that have emerged from the payment protection insurance (PPI) scandal because of the way 'personal contract purchases' (PCPs) are sold to car buyers. UK regulators are looking closely at the sale and use of PCPs. A report due out before the end of next month from the Financial Conduct Authority (FCA) is likely to offer greater clarity on its views on the fairness of the arrangements to consumers.
EU steps back from major legislative reforms on fintech, for now
The European Commission is set to step back from introducing a raft of new laws to account for changes in the financial technology (fintech) market, according to a leaked document. According to a draft copy of a fintech action plan (19-page / 400KB PDF) currently under development, the Commission said "the case for broad legislative or regulatory action or reform at EU level" on fintech issues is "limited".
For regular comments, news and views from the insurance team at Pinsent Masons, see our insurance content on Out-law here.
Originally published by Pinsent Masons in conjunction with OutLaw.com
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