Proposals for a Legislative Reform Order to amend Lloyd's Act 1982 - 10.3.08

This consultation was issued on 7 March and sets out proposals to modernise the governance arrangements of Lloyd's of London and remove restrictions which impede the way the Lloyd's insurance market operates, by way of a Legislative Reform Order amending Lloyd's Act 1982. The consultation includes a draft of the statutory instrument and runs for 12 weeks. Responses must reach the Treasury by 30 May 2008.

The consultation document is available here

1. Relax the rule requiring the Chairman and Deputy Chairmen to be working members, so that these posts may be filled by any member of the Council, provided always that one of the Chairman and Deputy Chairman is a working member;

2. Remove restrictions on elections to the Council affecting working members, to permit more flexibility and greater alignment with the Combined Code;

3. Remove the requirement for the Governor of the Bank of England to approve appointments of nominated members of Council, as this duplicates the Financial Services Authority's approval process;

4. Remove the provisions relating to the Committee of Lloyd's;

5. Modernise and streamline the Council's delegation powers, while preserving the Council's existing reserved powers;

6. Ease restrictions on the composition of Disciplinary Committees;

7. Remove the restriction that requires managing agents generally to accept business only from a Lloyd's broker, while retaining the class of "Lloyd's broker" for brokers that want to bear the title of "Lloyd's broker"; and

8. Remove the divestment provisions (which prohibit prescribed associations between Lloyd's brokers and managing agents), in favour of a new mechanism, consistent with the Financial Services Authority's regulatory requirements, which will allow the Society to monitor potential conflicts of interest between managing agents and associated brokers, and provide transparency on such associations to members.
The list of consultees is:
§  Lloyd's of London
§  Lloyd's of London and its members
§  Lloyd's market participants
§  Lloyd's managing agents
§  Lloyd's brokers
§  Lloyd's members' agents
§  Industry/trade associations
§  Association of Lloyd's Members
§  Association of British Insurers
§  Association of Investment Companies
§  Association of Private Clients Investment Managers and Stockbrokers
§  British Bankers Association
§  Chartered Insurance Institute
§  City of London Law Society
§  Confederation of British Industry
§  Federation of Small Business
§  Financial Markets Law Committee
§  High Premium Group
§  Institute of Insurance Brokers
§  Insurance Institute of London
§  International Underwriting Association of London
§  International Union of Aviation Insurers
§  Investment Management Association
§  Law Society of England and Wales
§  Law Society of Scotland
§  Law Society of Northern Ireland
§  Lloyd's Market Association
§  Lloyd's Market Insurance Brokers' Committee
§  London Investment Bankers Association
§  London Stock Exchange
§  Bank of England
§  Cabinet Office
§  Department of Business, Enterprise and Regulatory Reform
§  HMRC
§  Financial Services Authority
§  Welsh Assembly Government
§  Scottish Executive
§  Small Business Service
§  Individuals
§  Christopher Stockwell (NACDE)
§  Leon Metcalfe (Cotesworth Action Group)
§  D W Mann
§  Julian West