Prudential Regulation Authority Rulebook

3.1

This Part applies to the Society and managing agents separately.

3.2

For the purposes of complying with 2, a managing agent must establish an audit committee which meets the criteria set out in 2.2 and which is responsible for performing the functions set out in 2.4 in respect of:

1. (1) each syndicate it manages; and
2. (2) any syndicate in respect of which it was the last managing agent to manage during the preceding year and which has no managing agent on 31 December where syndicate statutory accounts are required to be prepared.

3.3

For the purpose of:

1. (1) 2, as applied to the Society, references to “governing body” are to be interpreted as references to the Council.
2. (2) 2.4, as applied to managing agents,
1. (a) references to “statutory audit” and “statutory audit of the annual and consolidated financial statements” are to be interpreted as references to the audit of the syndicate statutory accounts in accordance with the requirements of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (SI 2008/1950); and
2. (b) references to “statutory auditor” or “audit firm” are to be interpreted as a reference to the statutory auditor or audit firm responsible for the audit of the syndicate statutory accounts referred to in 3.3(2)(a);
3. (3) 2.4(3), as applied to managing agents, the reference to “the financial reporting of the firm” is to be interpreted as a reference to the financial reporting in respect of each syndicate referred to in 3.2 for which the managing agent is responsible; and
4. (4) 2.4, as applied to the Society,
1. (a) references to “statutory audit” and “statutory audit of the annual and consolidated financial statements” are to be interpreted as references to the audit of the aggregate accounts in accordance with the requirements of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (SI 2008/1950) and the audit of the Society’s group financial statements; and
2. (b) references to “statutory auditor” or “audit firm” are to be interpreted as references to the auditor or audit firm responsible for the audit of the aggregate accounts referred to in 3.3(4)(a) and the audit of the Society’s group financial statements.