Prudential plc and Rothesay Submit Their Appeal on the Blocked £12 Billion Part VII Transfer
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Key takeaways:
- On Friday 27 September 2019, Prudential plc (“Prudential”) and Rothesay Life plc (“Rothesay”) announced that they had filed an appeal against the controversial decision of Snowden J blocking Prudential’s proposed transfer to Rothesay of annuity policies under Part VII of the Financial Services and Markets Act (“FSMA”).
- Snowden J’s decision considered the scope of judicial discretion under the relevant provisions of FSMA and, in particular, took account of considerations other than actuarial matters that may be considered important by customers, for example, the reputation and age of the respective insurers.
- The exercise of the court’s discretion under FSMA casts doubt on the previous industry assumption that consent would likely follow the support of the independent expert and the UK regulators. For future Part VII transfers, insurers and reinsurers may need to take into account factors beyond the requirements under Solvency II and the current Part VII provisions.