Sompo Japan Insurance Inc

Sompo Japan Insurance Inc

The scheme is fair and appropriate to sanction under section 111(3) FSMA. The marginal reduction in security for transferring policyholders (from 99.88% to 99.6%) is not material and remains well above the FSA's regulatory benchmark. No objection raised, including those relating to legal effectiveness, OFAC exposure, or conflicts of interest, justifies refusal of sanction. The scheme has been properly scrutinised and is not unfair to any class of policyholder.

Parties
Applicant: Sompo Japan Insurance Inc.; Respondent: Transfercom Limited; Regulator: Financial Services Authority; Objector: AXA Corporate Solutions Assurance
Jurisdiction
England and Wales
Judgment Date
16 February 2011
Procedural Posture
Insurance Business Transfer Scheme / Final Sanction Hearing
Outcome
scheme sanctioned
Legal Topics
Part VII Transfer, Insurance Business Transfer, Policyholder Protection, Court Sanction, FSMA 2000
Insurance Law Company Law Financial Regulation Part VII Transfer Insurance Business Transfer Policyholder Protection Court Sanction FSMA 2000

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 7 Party arguments 2 Amounts and remedies 14
Sign in to unlock

Parties

Sompo Japan Insurance Inc.

Applicant

Transfercom Limited

Respondent

Financial Services Authority

Regulator

AXA Corporate Solutions Assurance

Objector

Procedural Posture

Insurance Business Transfer Scheme / Final Sanction Hearing

Legal Issues

  1. 1 Whether the proposed insurance business transfer scheme is fair to all affected classes of policyholders under section 111(3) FSMA
  2. 2 Whether the procedural and jurisdictional requirements for sanctioning the scheme are met
  3. 3 Whether the marginal reduction in security for transferring policyholders is material or unfair

Ratio Decidendi

The scheme is fair and appropriate to sanction under section 111(3) FSMA. The marginal reduction in security for transferring policyholders (from 99.88% to 99.6%) is not material and remains well above the FSA's regulatory benchmark. No objection raised, including those relating to legal effectiveness, OFAC exposure, or conflicts of interest, justifies refusal of sanction. The scheme has been properly scrutinised and is not unfair to any class of policyholder.

Court Disposition

scheme sanctioned

Orders

  • The insurance business transfer scheme is sanctioned under Part VII of the Financial Services and Markets Act 2000.