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

LLD 2.3 Information on matters likely to be of material concern to the FSA

LLD 2.3.1D

The Society must immediately inform the FSA in writing if it becomes aware that any matter likely to be of material concern to the FSA may have arisen in relation to:

  1. (1)

    the regulated activities for which the Society has permission; or

  2. (2)

    underwriting agents; or

  3. (3)

    approved persons or individuals acting for or on behalf of underwriting agents.

LLD 2.3.2G

LLD 2.3.1 D is designed to enable the FSA to fulfil its monitoring and enforcement obligations under paragraph 6 of Schedule 1 to the Act (The Financial Services Authority), whilst at the same time recognising the Society's powers and responsibilities for supervising and regulating the market.

LLD 2.3.3G

In view of the Society's responsibilities for the Society's regulatory functions, the FSA's monitoring of underwriting agents, and approved persons acting for them or on their behalf, may be less intensive than its monitoring of firms and approved persons outside the Lloyd's market. The purpose of LLD 2.3.1 D is to ensure that the Society informs the FSA when it becomes aware, as a result of carrying out the Society's regulatory functions, of matters likely to be of material concern to the FSA.

LLD 2.3.4G

Matters likely to be of material concern to the FSA include but are not limited to:

  1. (1)

    facts suggesting that an underwriting agent may no longer satisfy the threshold conditions in relation to a regulated activity for which it has a Part IV permission;

  2. (2)

    facts suggesting that an underwriting agent may have contravened, is contravening, or is likely to contravene, a requirement imposed on it by or under the Act;

  3. (3)

    facts suggesting that the interests of consumers are or may be at risk;

  4. (4)

    facts suggesting that an approved person acting for or on behalf of an underwriting agent may not be fit and proper to carry out the functions to which the approval relates;

  5. (5)

    facts suggesting that an approved person, or individual acting for or on behalf of an underwriting agent, may not be fit and proper to perform functions in relation to a regulated activity carried on by a firm or exempt person;

  6. (6)

    facts suggesting that an approved person acting for or on behalf of an underwriting agent may have failed to comply with a Statement of Principle, or may have been concerned in the contravention by an underwriting agent of a requirement imposed on it by or under the Act; and

  7. (7)

    facts suggesting that a person may have committed a criminal offence that the FSA has power to prosecute under the Act and that came to the Society's notice in the course of its regulated activities or the Society's regulatory functions.