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All news by: James Eldridge

Insolvency and corporate governance – group structures

On 26 August 2018, the Government issued its response to its consultation on insolvency and corporate governance. Here’s a summary of the key themes, their effects and tips on how you can prepare for the future.

Are your legal entity structures in order?

Acquisition activity within the insurance sector has led to many business’ legal entity structures become increasingly complex. The result of which is leading to an increase in cost and inefficiency across multiple regulatory rules, relationships and returns.  

Non-executive directors and legal entity management

Non-executive directors are essential to strong board leadership, risk management and good corporate governance. The role, however, is one which exposes the director to considerable personal risk as the Companies Act 2006 does not distinguish between the duties of non-executive and executive directors.   

Restructuring could radically reduce your capital requirements

For some insurers, acquisition activity has created legal entity structures with a number of different underwriting platforms and locally regulated subsidiaries across jurisdictions. This can result in the cost and inefficiency of multiple regulatory rules, relationships and returns and, when the solvency requirements of all the various subsidiaries are added together, an aggregate capital requirement that can be much higher than that of a single consolidated business.

Regulatory intervention: what next for the CFD industry?

An article discussing the concerns raised over the risks posed to retail investors from the provision of speculative products such as CFDs. It has been widely publicised, that the regulators are considering intervention, including possible measures such as leverage limits, guaranteed limits on client losses or restrictions on the marketing and distribution of these products.