FSA agrees two-year absence from regulated business for finite re brokers

The London market reinsurance brokers that designed a finite reinsurance deal for Chiyoda Fire & Marine Insurance Company (Europe) have agreed with the Financial Services Authority (FSA) not to undertake any regulated activity for two years. Robert Phillips and Isabel Rawlence worked for reinsurance broker Benfield in 2001 when Chiyoda Europe asked them to design a Loss Portfolio Transfer deal. According to the FSA, the contract was used by Chiyoda Europe’s senior management to disguise its true financial position to auditors and the regulator.