Gibraltar-based insurers operating in the UK should soon have confirmation that their policyholders are covered by the Financial Services Compensation Scheme (FSCS).
The Financial Services Authorit ...
Gibraltar-based insurers operating in the UK should soon have confirmation that their policyholders are covered by the Financial Services Compensation Scheme (FSCS).
The Financial Services Authority (FSA) is expected to make an announcement by the end of the week.
Last week, Insurance Times reported that the FSA had overlooked Gibraltar-based insurers when it transferred the powers of the old Policyholders Protection Board (PPB) to the FSCS on 1 December 2001.
This happened despite those insurers having been contributors to the PPB in the run-up to the switch over.
Potentially, it means that in the event of a Gibraltar-based insurer's collapse, its policyholders would have no recourse to the FSCS.
A spokesman for Gibraltar's Financial Services Commission said: "At the end of last week, I was led to believe that something would be issued fairly shortly, possibly sometime today (5 June 2002).
"I was advised that it was going to be a favourable outcome for Gibraltar insurers and hence policyholders in the UK."
The FSA declined to comment on the imminence of an announcement. However, a spokeswoman said: "The general position is that (UK) policyholders taking out policies with insurance companies based in Gibraltar... are covered by the compensation scheme."
