Underwriting agents are subject to regulation by the Society as well as by the appropriate regulator. In particular, they are subject to requirements as to their financial resources and as to making and maintaining accounting records, set by the Society. The appropriate regulator is satisfied that underwriting agents will be subject to adequate financial resource and accounting requirements as long as they remain subject to and comply with requirements at least equivalent to Lloyd's Capital and Solvency Requirements 2001 and the relevant parts of, or requirements made under Lloyd's Underwriting Agents Byelaw (No. 4 of 1984), in each case as amended and in force immediately before commencement. Accordingly, instead of imposing an obligation directly on members’ agents1, the directions in IPRU-INV 4.4.1D to IPRU-INV 4.4.5D and IPRU-INV 4.5.1D require the Society to require those firms to comply with the relevant requirements.
A members' adviser is not regulated by the Society and accordingly this chapter specifies the financial resource and accounting requirements to be met. Firms which fall within the scope of this chapter will be firms with permission only to advise persons on syndicate participation at Lloyd's. The nature of that advisory business is akin to corporate finance advice and so the applicable requirements are those in IPRU-INV 3 relevant to firms giving corporate finance advice. Firms with other permissions will fall within the scope of other chapters of IPRU(INV), MIFIDPRU3 or INSPRU.2