The Copenhagen Re case was an application to the Court to sanction a scheme for the transfer of insurance business pursuant to Part VII Financial Services and Markets Act 2000. In the main, Snowden, J’s ruling is a restatement of the well-recognised grounds upon which the Court will exercise its discretion to sanction a transfer scheme. The ruling nevertheless goes further, in that it is the first occasion where the Court has had to consider how to deal with the effect of a transfer scheme upon guarantees given by the transferor’s parent company in respect of policies written through the Institute of London Underwriters. Snowden, J held that he had the power under Section 112(1)(d) FSMA 2000 to modify the guarantees given to the ILU by Copenhagen Re’s parent.  The effect of the modification was that the original guarantee remained in place but on terms that the guaranteed obligations were modified by the court to become those of the transferee under the scheme, Marlon Insurance Company Limited.  Continue reading