The disqualification of a former Gen Re employee, London-based Milan Vukelic, has been overturned after he sought a review.

In December last year Sunrise Exchange News reported Mr Vukelic had been barred for his alleged involvement in illegal reinsurance contracts with the now defunct FAI Insurance.

The Australian Prudential Regulation Authority (APRA) ruled he was not allowed to be a director or senior manager of a general insurer or authorised non-operating holding company, or a senior manager or agent of a foreign general insurer in Australia.

APRA alleged Mr Vukelic – CEO of the London-based Faraday Group – was involved in a reinsurance transaction between the group’s Gen Re subsidiary and FAI.  The arrangement, which improperly boosted FAI’s 1997/98 profit and loss statements, was disguised as several conventional reinsurance transactions with the risks for Gen Re removed through side letters.

However, an APRA review has found there was insufficient evidence to support the original decision. APRA is advising the Financial Services Authority in the UK of its decision.