Important updates

25th November 2020

Following the High Court Sanction hearing, Mr Justice Snowden has today granted the Order for the Transfer.  The Transfer will be effective from 00:01 on 30 December 2020 and all transferring policies will become policies of Lloyd’s Insurance Company S.A. (Lloyd’s Brussels) from that date.

The Transfer will not change the terms and conditions of any policy, except that Lloyd’s Brussels will become the Insurer and Data Controller in respect of Transferring Policies.

Sanctions Hearing Timing and Attendance

The Sanctions Hearing will take place at 10:30am on 18 November 2020.  As a result of current Government Restrictions, the hearing will be conducted in public in accordance with CPR PD51Y.  It will be organised and conducted remotely using Skype.

Any person wishing to make representations or wishing to witness the hearing will need to do so over the internet and provide an email address at which to be sent an appropriate link for access.

10 November 2020 UPDATE

Since the Directions Hearing, there have been a number of changes to the Scheme. In the Document Library, the original Scheme and Scheme Summary have been replaced by the Amended Scheme and Amended Scheme Summary. In addition, a document entitled ‘  Summary of Changes to the Scheme’ provides a summary of the amendments.

As a result of his ongoing review of the proposed transfer, the Independent Expert has now published his Supplementary Report.  The Supplementary Report and a Summary of the main conclusions can be found in the Document Library.

Lloyd’s has taken the decision to delay the Scheme Effective Date to ensure that Lloyd’s, Lloyd’s Brussels and market participants are ready and given the maximum amount of time available to ensure the successful implementation of this substantial and complex Part VII transfer.

The Sanctions Hearing is now scheduled for 18 November 2020 and it is proposed that the Scheme Effective date will now move to the 30th December 2020. The other key dates for the process are shown below.

It is expected that the Sanctions Hearing for the proposed transfer will take place at

High Court of England & Wales Companies & Markets Division
Fetter Lane
London

On: 18 November 2020
At: 10:30 am

Timings and Sequence of Events

Brexit

On 23 June 2016, a majority of the people who voted in the referendum, voted for the UK to leave the EU. The exit process was then triggered by the invoking of Article 50 of the Lisbon Treaty on 29 March 2017 as a result of which the UK was scheduled to leave the EU on 29 March 2019.

However, as a result of an agreement between the UK and the EU member states extending the Article 50 period the UK left the EU on 31 January 2020. The UK and the EU leaders endorsed an Agreement on the Withdrawal of the United Kingdom and Northern Ireland from the EU on 17  October 2019 and that agreement was ratified and entered into force on 31 January 2020. It includes a transitional period during which there will be legal and regulatory continuity between the UK and the EU on the basis of the existing rules from the date the UK leaves the EU until the expiry of such period.

It is currently anticipated that the transition period will expire on 31 December 2020.