Digital Satellite Warranty Cover Ltd and Another v Financial Services Authority: SC 13 Feb 2013

The appellants challenged an order for the dissolution of their company under the 2000 Acts. They had provided warranties for assorted consumer electrical goods which amounted to insurance, but said that they were not required to be registered under the Act since only services in kind were ever provided.
Held: The appeal failed. The fact that certain activities were to be regulated under European law did not prevent the regulation of other associated areas, in this case the issuing of insurance by provision of goods and services only. These were contracts of insurance, and the appellants were not registered.
The First Council Directive had not been intended to be comprehensive, and the list of businesses it scheduled did not restrict the capacity to regulate other actiities. This was acknowledged in its recitals.
The common law which restricted contracts of insurance to those where the detriment suffered by the insurer was strictly financial was displaced by the reuirement to construe UK law to conform with EU law.

Lord Neuberger, President, Lady Hale, Lord Mance, Lord Clarke, Lord Sumption
[2013] 1 WLR 605, [2013] UKSC 7
Financial Services and Markets Act 2000, cial Services and Markets Act 2000 (Regulated Activities) Order 2001, First Council Directive 73/239/EEC
England and Wales
CitedPhoenix General Insurance Co of Greece SA v Halvanon Insurance Co Ltd ChD 1985
The court was asked to consider preliminary issues concerning facultative obligatory (fac. oblig.) reinsurances of a variety of business. The issues included whether the reinsured was obliged to keep a retention and whether the writing of its . .
At First InstanceRe Digital Satellite Warranty Cover Ltd and Others ChD 31-Jan-2011
The Financial Services Authority sought public interest orders for the winding up of three companies selling, it said, extended warranty cover plans without authorisation. The companies said that authorisation was not required, since only services . .
Appeal fromDigital Satellite Warranty Cover Ltd v The Financial Services Authority CA 29-Nov-2011
Parties appealed against on order for the winding up of the company. The Authority (FSA) had said that the company which supplied warranties to owners of digital receiver boxes were providing regulated insurance services, but that the companies were . .
CitedPrudential Insurance Co v Inland Revenue Commissioners 1904
Contract for payment of sum on event
The Insurance company provided endowment insurance polices. They disagreed with the Commissioners as to whether these were policies of insurance and thus as to how they fell to be stamped. Life insurance was defined in the 1891 Act as ‘insurance . .
CitedDepartment of Trade and Industry v St Christopher Motorists Association Ltd 1974
The defendant company provided for the hire of a chauffeur if the insured was disqualified from driving.
Held: Contracts of insurance are not confined to contracts for the payment of money, but may include a contract for some benefit . .
CitedPhoenix General Insurance Co of Greece SA v Halvanon Insurance Co Ltd CA 1987
Kerr LJ summarised the aim of the Directives underlying the 1977 Regulations as being to achieve a uniform classification of non-life insurance businesses and of insured risks for the purposes of the supervision of insurers with a view to ensuring . .
CitedMarleasing SA v La Comercial Internacional de Alimentacion SA ECJ 13-Nov-1990
Sympathetic construction of national legislation
LMA OVIEDO sought a declaration that the contracts setting up Commercial International were void (a nullity) since they had been drawn up in order to defraud creditors. Commercial International relied on an EC . .

Lists of cited by and citing cases may be incomplete.

Financial Services, European, Insurance

Leading Case

Updated: 10 November 2021; Ref: scu.470946