News release

Overseas insurers, update on Balva Insurance Company AAS

The SRA has received an update on problems involving Balva Insurance Company AAS (Balva).

The SRA has kept in contact with Balva, as well as the Financial Conduct Authority (FCA) and understands that the Financial Services Compensation Scheme (FSCS) declared Balva to be "in default" on 10 July 2014 (FSCS news - Balva).

The FSCS define "in default" as "a firm unable, or likely to be unable to pay claims against it. This will generally be because it has stopped trading and has insufficient assets to meet claims, or is in insolvency". The declaration of default means that the FSCS is able to accept eligible claims against Balva. The FSCS has confirmed that claims may be made by both firms and clients within the FSCS eligibility rules – read an outline of these rules for European Economic Area (EEA) Qualifying Insurers (PDF 2 pages, 41KB).

Professional indemnity claims should be directed to:

Caytons Law
85 Gracechurch Street
London
EC3V 0AA
Tel: 0207 398 7600

E-mail: Claims@caytonslaw.com

The SRA understands that the liquidator appointed to wind up Balva is still in the process of gathering all the claims by creditors. A report will be made then to the Latvian Financial and Capital Market Commission and decisions will be taken as to the solvency or otherwise of the company.

 
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