Prudential Regulation Authority Rulebook

1.1

This Part applies to the Society.

1.2

In this Part the following definitions apply:

insurance business

means the regulated activities of effecting contracts of insurance or carrying out contracts of insurance written at Lloyd's.

Underwriting agent

means a firm permitted by the Council to act as an underwriting agent at Lloyd's.

2.1

1. (1) The PRA directs that, with effect from 27 May 2014, Part XXII of FSMA (Auditors and Actuaries) applies to the carrying on of insurance business by members as modified by (2).
2. (2) Regulations made by the Treasury under section 342(5) and section 343(5) of Part XXII of FSMA apply only to actuaries appointed by a managing agent in respect of the insurance business of a syndicate, in relation to the long-term insurance business of that syndicate.
3. (3) In Part XXII of FSMA (Auditors and Actuaries) as applied by this direction:
1. (a) a reference to an auditor of an authorised person is to be read as including an auditor appointed by a managing agent in respect of the insurance business of a syndicate; and
2. (b) a reference to an actuary acting for an authorised person is to be read as including an actuary appointed by a managing agent in respect of the insurance business of a syndicate.

2.2

The direction in SUP 3.1.13D of the PRA Handbook continues to have effect from the date specified in that direction to the date on which the direction in 2.1 has effect.

3.1

With effect from 15 October 2003, it was directed that the following core provisions of FSMA apply to the carrying on of insurance market activities by members:

1. (1) Part 9A (Rules and guidance) for the purpose of applying the rules in chapters 1 and 3, the Policyholder Protection Part, the FSCS Management Expenses Levy Limit and Base Costs Part, the Management Expenses in respect of Relevant Schemes Part and relevant interpretative provisions; and
2. (2) Part XV (Financial Services Compensation Scheme).

4.1

The Society must maintain byelaws establishing appropriate and effective arrangements to compensate individual members and former members who were individual members if underwriting agents are unable, or likely to be unable, to satisfy claims by those members relating to regulated activities carried on in connection with their participation in Lloyd's syndicates.