No big deal BrexitDec 10th, 2020
The potential issues regarding FSCS protection of ‘passported-in’ insurers was clearly set out in Young -v- Bennett and Acromas.
On the 9th December 2020 I received the ‘substantive response’ promised in October from the Financial Services Compensation Scheme (FSCS) regarding the potential impact that Brexit might have on the security afforded to ‘passported-in’ insurers.
This could have potentially impacted upon both:
- Existing periodical payments Orders; and
- All outstanding claims (either on a lump sum or periodical payments basis).
The confirmation obtained confirms that, regardless as to whether the insurer remains authorised and regulated in the UK, as long as the act or omission that gave rise to the accident was during the period when the insurer was authorised, FSCS protection will continue post 31st December 2020.
This will come as a huge relief to claimants.
However, the position going forward could be complicated and FSCS cover might depend on what transitional regime a ‘passported-in’ insurer enters and when the accident occurs.
For more information and detail, please contact me.