NOVIS Legal Update - October 2024
Background
On June 1, 2023, the National Bank of Slovakia (NBS) made a decision to revoke NOVIS's insurance license and subsequently requested the competent court to initiate a liquidation process.
After a thorough review, NOVIS determined that the NBS's decision was based on a misinterpretation of facts and an incorrect application of relevant laws. In response, NOVIS filed a comprehensive, 115-page lawsuit on August 4, 2023, challenging the legality of the NBS's decision and demanding its complete annulment. NOVIS supported its lawsuit with three strong expert opinions, whereas such an independent review is missing in the NBS's argumentation.
Current Status
- On February 13, 2024, the Bratislava III Municipal Court suspended the liquidation process requested by the NBS against NOVIS, pending the final decision on NOVIS's lawsuit against the NBS decision, which is currently under review by the Administrative Court. NOVIS is confident that this suspension can be interpreted as an indication of the court's skepticism towards the NBS's decision.
- On July 31, 2024, the Joint Board of Appeal of the European Supervisory Authorities (ESA) (EBA, ESMA, and EIOPA) issued a groundbreaking decision in favor of NOVIS in a dispute over access to classified documents. These documents contain EIOPA's recommendations and the European Commission's opinions regarding a possible violation of Union law by the National Bank of Slovakia in relation to NOVIS's regulation. EIOPA acted unlawfully by refusing access to these documents, must make a new decision, and reimburse NOVIS for the incurred costs. More information can be found in the public notice.
- On August 21, 2024, the Regional Court in Bratislava upheld the decision of the Bratislava III Municipal Court of February 13, 2024, by which the Municipal Court suspended the proceedings for the dissolution and liquidation of NOVIS initiated by the National Bank of Slovakia (NBS). The proceedings for dissolution and liquidation are thus suspended until a decision is made on NOVIS's administrative lawsuit against NBS's decision to revoke its license, which is currently being reviewed by the Administrative Court in Bratislava. If the Administrative Court upholds NOVIS's complaint, the dissolution and liquidation proceedings will be rendered moot.
NOVIS's operations continue as before, all insurance policies remain active and unaffected. NOVIS processes customer inquiries promptly and efficiently.
NOVIS appreciates your continued support and patience as it goes through this process and will keep you updated on further developments.
Other important information:
