UK holding back vital Lloyd’s evidence

Date: 18/04/02

By Peter Chapman

THE UK is withholding documents vital to the European Commission's probe into Lloyd's of London that could help investors fight bankruptcies claims in British courts, European Voice has learned.

The Commission is investigating claims that the UK government failed to ensure the world famous insurer was properly audited in line with EU rules.

That allegedly led to thousands of investors plunging money into the market, unaware that they would face huge claims for asbestos-related diseases - many originating in the US, where courts have awarded billions of dollars to victims.

But British government sources say London is unwilling to lift confidentiality on the dossier - casting doubt on UK press reports that it was happy to go public.

The documents are seen as a crucial weapon for UK investors - known as 'names' - who are currently battling against paying their share of losses. They hope the details spelling out the magnitude of the EU case against the UK government could convince judges to stall actions against them until Brussels has finished its own investigation.

The UK's decision means the Commission is legally bound to respect confidentiality of documents concerning its investigations.

The EU executive has given London until the end of the month to respond to its formal legal warning issued last December.