Lloyd’s investors sue Treasury for £1bn
Investors reported to include Tory MPs
The Treasury is facing a £1bn compensation claim from Lloyd’s of London
investors, who claim they made heavy losses at the insurer because the Treasury,
the market’s watchdog before the Financial Services Authority came into being,
failed to regulate the market properly.
According to The Scotsman, the 1,100 investors include two members
of the Conservative shadow cabinet and a number of prominent business figures.
They argue that the Treasury failed to implement key European Union
directives including a measure that dictates how much insurers should hold in
reserves when writing certain types of business.
The Treasury strongly denied it had failed to regulate Lloyd’s properly.
A spokesman said it would defend itself from the compensation claim.