The choice of limited liability vehicle
All potential new Members must firstly appoint a Members’ Agent and then have to set up either a NameCo or a Limited Liability Partnership (LLP). The only other way that a new investor can enter the Lloyd’s market is by means of purchasing an existing Nameco or LLP. However, given the uncertainty as to the supply of such vehicles, this is not the method of entry used by most new Members. Most new Members set-up their own new limited liability vehicles.
The choice of limited liability vehicle does not affect the syndicates on which the Member can underwrite.
Each individual’s choice of vehicle should ideally be determined by their personal investment aims, as well as their own financial and tax considerations. Whilst HAL is able to outline the key features of each type of limited liability vehicle, the choice of vehicle should be determined by which vehicle might fit in with other aspects of their financial planning. HAL therefore recommends that all prospective Members discuss which is the best vehicle for them with their own financial advisers.