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Status: You are viewing the version of the handbook as on 2005-06-30.

LLD 15.1 Application and purpose1

Application

LLD 15.1.1R

This chapter applies to the Society and to managing agents.1

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LLD 15.1.2R

A contravention of the rules in this chapter does not give rise to a right of action by a private person under section 150 of the Act (Actions for damages) and each of those rules is specified under section 150(2) of the Act as a provision giving rise to no such right of action.

Purpose

LLD 15.1.3G

The requirements in this chapter lay down a minimum level of disclosure of financial information and of transparency.

LLD 15.1.4G

This chapter requires the Society to report on the insurance business carried on by members and on the assets and liabilities of members and the Society. It also requires managing agents to report on the insurance business carried on through each syndicate they manage. Reporting at syndicate level is required to enable the Society to prepare the Lloyd's Return.1

LLD 15.1.5G

The Lloyd's Return is made annually and contains the statement required from the Society that it has maintained capital resources equivalent to its capital resources requirement under PRU1. This does not absolve the Society from the obligation to maintain capital resources equivalent to its capital resources requirement1 at all times.

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LLD 15.1.6G

This statement of solvency is required to be supported by sufficient detail to allow the FSA to form an opinion on the adequacy of the matters stated and to evaluate other key financial data. All the information submitted as part of the Lloyd's Return will be made available for public inspection.

LLD 15.1.7G

The Lloyd's Return is based on the return required from insurers, but the format and content have been modified where necessary to reflect the special characteristics of Lloyd's.

LLD 15.1.8G

Where appropriate, the Society is also required to modify reporting to make it more like that of an insurer. This is to aid comparisons between Lloyd's and insurers.