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ARTICLE · 12 MAY 2015

Insurance Intermediary Insolvency: A CASS Act

Clyde & Co
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In addition to the general insolvency measures found in the Insolvency Act 1986, insurance intermediaries are subject to specific client money rules, which have a particular effect if they become insolvent.

United KingdomInsurance
Geraldine Quirk
Geraldine Quirk
Julie Tripp
Julie Tripp
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In addition to the general insolvency measures found in the Insolvency Act 1986, insurance intermediaries are subject to specific client money rules, which have a particular effect if they become insolvent. Though in the context of investment firms rather than the insurance sector, the recent UK Supreme Court case of Lehman Brothers International (Europe) (in administration) v CRC Credit Fund and ors [2012] UKSC 6 (LBIE) is a useful decision against which to consider the application of many of these client money rules. The decision has highlighted how these rules could, absent reform, result in some confusion in the event of an insurance intermediary insolvency.

Holding client money

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