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Status: You are viewing the version of the handbook as on 2009-03-31.

INSPRU 8.4 Capacity Transfer Market

Application

INSPRU 8.4.1RRP

This chapter applies to the Society.

Purpose

INSPRU 8.4.2GRP

The rules and guidance in this chapter are intended to promote confidence in the market at Lloyd's, and to protect certain consumers of services provided by the Society in carrying on, or in connection with or for the purposes of, its regulated activities. They do this by ensuring that the Society appropriately and effectively regulates the capacity transfer market so that it operates in a fair and transparent manner.

Requirement to make byelaws governing conduct in the capacity transfer market

INSPRU 8.4.3RRP

The Society must make appropriate byelaws governing conduct in the capacity transfer market.

INSPRU 8.4.4GRP

The byelaws referred to in INSPRU 8.4.3 R should:

  1. (1)

    ensure that adequate and effective arrangements are in place to enable members and persons applying to be admitted as members to enter into transactions to transfer syndicate capacity and settle these transactions in a timely manner;

  2. (2)

    give clear and comprehensive guidance about the dissemination of information that is, or may be, relevant to the price of syndicate capacity and the transparency of the capacity transfer market; and

  3. (3)

    prohibit unfair and abusive practices (including market manipulation), the misuse of information not generally available, and the dissemination of false or misleading information.

INSPRU 8.4.5GRP

The Society should have adequate and effective arrangements to:

  1. (1)

    record and monitor transactions in the capacity transfer market, and maintain adequate audit trails; and

  2. (2)

    suspend or annul transactions where appropriate.

INSPRU 8.4.6GRP

The Society should regularly review the byelaws referred to in INSPRU 8.4.3 R, taking account of the standards of conduct required in other UK financial markets.

INSPRU 8.4.7GRP

The Society should consult members and underwriting agents before it finalises material changes in the byelaws referred to in INSPRU 8.4.3 R, and should have timely and effective arrangements for notifying them of changes in these byelaws.