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You are viewing INSPRU 8 General provisions applying INSPRU and GENPRU to Lloyd's as of . INSPRU 8 General provisions applying INSPRU and GENPRU to Lloyd's was last updated on 01/01/2016.

INSPRU 8.1 Application

31/12/2006R

INSPRU 8.1 applies to:

  1. (1)

    the Society;

  2. (2)

    managing agents.

INSPRU 8.2 Special provisions for Lloyd's

Management of risk

31/12/2006R

The Society must establish and maintain effective arrangements to monitor and manage risk arising from:

  1. (1)

    conflicts of interest (including in relation to (2) to (4));

  2. (2)

    inter-syndicate transactions, including reinsurance to close and approved reinsurance to close;

  3. (3)

    related party transactions; and

  4. (4)

    transactions between members and itself.

Insurance receivables to be carried to trust funds

31/12/2006R

The Society must take all reasonable steps to ensure that each member:

  1. (1)

    executes the appropriate Lloyd's trust deeds; and

  2. (2)

    carries to the appropriate Lloyd's trust fund all amounts received or receivable by the member, or on its behalf, in respect of any insurance business carried on by it.

31/12/2006R

The Society must carry all amounts it receives on behalf of any member in respect of that member's insurance business to the appropriate Lloyd's trust fund.

31/12/2006R

A managing agent must carry all amounts it receives on behalf of any member in respect of that member's insurance business to the appropriate Lloyd's trust fund.

31/12/2006R

In complying with INSPRU 8.2.19 R to INSPRU 8.2.21 R, the Society and managing agents must take all reasonable steps to ensure that amounts received or receivable by a member in respect of general insurance business and long-term insurance business are carried to separate Lloyd's trust funds.

Amendments to byelaws, trust deeds and standard form letters of credit and guarantees

01/04/2013R

The Society must, as soon as it is practical to do so, notify the appropriate regulator of its intention to approve the form of any new Lloyd's trust deed.

01/01/2016R

The Society must, as soon as it is practical to do so, notify the FCA of its intention to make any amendment which may alter the meaning or effect of any byelaw, including:

  1. (1)

    any Lloyd's trust deed;

  2. (2)

    any standard form letter of credit prescribed by the Society from time to time; or

  3. (3)

    any standard form guarantee agreement prescribed by the Society from time to time.

01/01/2016R

The Society must provide the FCA with full details of:

  1. (1)

    the form of any new Lloyd's trust deed it intends to approve, as described in INSPRU 8.2.23 R and

  2. (2)

    any amendments falling within INSPRU 8.2.24 R.

31/12/2006R

The Society must consult interested parties in relation to any new Lloyd's trust deed and in relation to any amendment falling within INSPRU 8.2.24 R.

31/12/2006G

Except in urgent cases, the Society should consult in relation to any new Lloyd's trust deed or amendments before the new deed or amendments take effect.

01/01/2016R

The information provided to the FCA by the Society under INSPRU 8.2.25 R must include:

  1. (1)

    a statement of the purpose of any proposed amendment or new Lloyd's trust deed and the expected impact, if any, on policyholders, managing agents, members, and potential members; and

  2. (2)

    a description of the consultation undertaken under INSPRU 8.2.26 R including a summary of any significant responses to that consultation.

01/01/2016G

The FCA would normally expect to receive the information required under INSPRU 8.2.25 R and INSPRU 8.2.28 R not less than three months in advance of the proposed change.

INSPRU 8.4 Capacity Transfer Market

Application

06/01/2010R

This section applies to the Society.

Purpose

06/01/2010G

The rules and guidance in this section 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

31/12/2006R

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

31/12/2006G

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.

31/12/2006G

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.

31/12/2006G

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.

31/12/2006G

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.

01/01/2016R
  1. (1)

    The Society must give the FCA a report as at the end of each calendar quarter in which any capacity is transferred.

  2. (2)

    The report referred to in (1) must reach the FCA within one month of the end of the relevant calendar quarter and must include information on:

    1. (a)

      the total capacity in syndicates transferred during the quarter, analysed by syndicate and method of transfer;

    2. (b)

      the number, and nature, of all investigations by the Society into conduct in the capacity transfer market undertaken or continued during the quarter; and

    3. (c)

      the number, and nature, of all complaints received during the quarter about the operation of the capacity transfer market.