Double trouble for D&O insurers as the UK regulators extend the limitation period applicable to disciplinary investigations

By Simon Cooper

Recent legislative changes in the UK are likely to raise concerns for directors and officers (D&O) insurers and their insureds. The changes will significantly increase the cost and uncertainty of regulatory investigations and disciplinary proceedings not only for the individuals who are subject to scrutiny but also for their employers or companies as well as for their insurers.

Section 28 of the Financial Services (Banking Reform) Act 2013, which came into force in the UK on 25 July 2014 extends the period within which the Financial Conduct Authority or the Prudential Regulatory Authority can issue disciplinary actions against an individual from three years to six years. The extension of the limitation period does not apply retrospectively as it only applies to market abuse and financial misbehaviour occurring on or after 25 July 2014.

This extension of the limitation period seems likely to have a significant impact on regulatory investigations from both a legal and commercial perspective. The doubling of the limitation period will enable the UK regulators to undertake longer and more thorough investigations before they decide whether to impose a penalty and/or issue disciplinary proceedings against an individual…

Click on the link below to read the rest of the Ince & Co briefing.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Ince & Co

View more briefings from Ince & Co

Analysis from The Lawyer

Overview

International House
1 St Katharine's Way
London
E1W 1AY
UK
http://incelaw.com/

Turnover (£m): 86.70
No. of lawyers: 273 (UK 200)
Offices: 11
Qualified lawyers (firm wide): 273
Qualified lawyers (UK total): 140
Qualified lawyers outside London: 133 (International 50)