The fine, which is one of the heaviest-ever penalties is related to improper
reinsurance deals, which have tax implications.
Two reinsurance transactions signed by General Reinsurance UK purported to
transfer risk from two insurance companies to the reinsurer ‘were designed
without legitimate purpose and effect’, the FSA said.
Both deals, though billed as reinsurance, were not in fact used to transfer
significant risk, the watchdog ruled
‘Both conventional and finite reinsurance transactions should only be used
where there is a legitimate commercial purpose and sufficient risk transfer,”
said Margaret Cole, director of enforcement at the FSA.
The penalty would have been higher if General Re UK had not reported the
transactions to the regulator, cooperated and taken prompt action.
It also settled the matter earlier, which resulted in a discounted fine – the
penallty would otherwise have been £1.75m.
Mark McMullen joins the private client services team from Smith & Williamson
Merger between Clear & Lane Chartered Accountants and Magma Chartered Accountants was finalised on 3 February
BDO has taken its new partner intake to 23 during the first half of its financial year, including the appointment of five partners in five weeks
The firm reports 7.6% global fee income growth for the year ending 31 December 2016