This is our regular update of new insurance regulatory developments relevant to the Asia-Pacific* and India, new insurance-related case law in Hong Kong, Australia and England and interesting insurance articles from across the world.
Insurance regulatory updates
Australia
ASIC and APRA issue updated MoU
ASIC reports on compliance with financial advice fee
disclosure obligations
APRA proposes changes to prudential standard governing
insurance in superannuation
Insurance cases
TPT Patrol Pty Ltd as trustee for Amies Superannuation Fund v Myer Holdings Limited [2019] FCA 1747 (24 October 2019) – Federal Court of Australia – Securities class action – court confirms market-based causation applicable – shareholders have right of action for breach of stock exchange continuous disclosure obligations
In the first decision of its kind, the Federal Court of Australia has confirmed that shareholders may be able to recover damages for breach of continuous disclosure obligations on the basis of the market based causation theory.
In September 2014 the chief executive (CEO) of Australian department store chain Myer told equity analysts and financial journalists that the company would have a net profit after tax (NPAT) in financial year 2015 (FY15) of more than AUD 98.5 million. However, in March 2015 Myer told the ASX that its FY15 NPAT was between AUD 75 to 80 million. Immediately after the announcement, the company’s share price fell by more than 10%.
TPT, bringing the case on behalf of shareholders, argued that Myer did not have reasonable grounds for making its September 2014 NPAT representation; breached its continuous disclosure obligations by not disclosing that its NPAT would be lower and engaged in misleading conduct by not doing so. After Myer released its September 2014 representation, shareholders argued that they had purchased shares at an inflated price until the March 2015 ASX announcement, filing litigation in 2016. The court found in the first instance that on several occasions, there should have been disclosure regarding the likely FY15 NPAT, and “by not having so corrected at each of these points in time, Myer engaged in misleading or deceptive conduct”. The court found, however, that the link between the shareholders’ loss and the contraventions had not been proven.
Insurance articles / news
Ng Keng Hooi to leave AIA; Ping An exec to succeed
Mega-merger of Indian state-run insurers may cost 15,000 jobs
AXA XL secures London-based insurance agency
Myanmar gives green light to 11 foreign players
AXA announces plan to cut ties with coal
Allianz Malaysia reports 43% rise in net profit for 3Q
*Hong Kong, Singapore, China, Malaysia, Vietnam, Thailand and Australia.