D&O Update - The Criminal Justice Act 2011 And Central Bank (Supervision And Enforcement) Bill 2011

Author:Ms Sharon Daly, Helen Noble and Darren Maher
Profession:Matheson Ormsby Prentice

To read the full edition of the Insurance Newsletter, Autumn 2011, click here.

In the Summer Edition of the Insurance Ezine, we reported on the Criminal Justice Bill 2011 and its potential implications for D&O insurers. The Criminal Justice Act 2011 was signed into law on 2 August 2011 and various provisions of the Act were commenced with effected from 9 August 2011 by Ministerial Order. The Act subjects directors to possible investigation by the Gardai which inevitably exposes them to legal defence costs. Insurers in the D&O market should review their policy wordings to determine if the D&O policies respond to cover any legal advice required to protect directors in investigations commenced by Gardai. Likewise brokers will need to ensure that their clients are adequately covered or are aware of their exposure.

Click here for more information in relation to the Act. D&O insurers of financial services providers should also be aware of the Central Bank (Supervision and Enforcement) Bill 2011 which was published on 28 July 2011 as part of Ireland's legislative programme imposed by the European Union/ International Monetary Fund Programme of Financial Support for Ireland...

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