The Financial Services Commission v Lemma Europe Insurance Co Ltd Claim no. BVIHC (Com) No 318 of 2012

Lemma paid monies into a bank account in the BVI in order to enable it to become licensed to carry out business in the BVI.   The judgment holds that:

  • that although the fund never ceased to be an asset of Lemma, Lemma had, for valuable consideration moving from the FSC (in the form of a license) appropriated the fund to towards the payment of its domestic liabilities (i.e. BVI insurance creditors).  In doing so Lemma had created an equitable charge over the fund, and accordingly the fund was not available for the general body of its creditors, but rather was charged to meet its BVI insurance liabilities.