Lloyd's issues distribution costs and broker remuneration guidance: Lloyd's has issued consolidated guidance on distribution costs, broker remuneration and additional charges in the form of a Market Bulletin. The guidance follows discussion with the Lloyd's Market Association (LMA) and the London and International Insurance Brokers Association. The Bulletin:
- attaches refreshed and reissued Lloyd's consolidated guidance;
- reminds managing agents of the advice LMA obtained for its members on broker remuneration;
- requires that each managing agent hold a board meeting to reconsider the application of the guidance to its business arrangements with brokers; and
- reissues Lloyd's reporting requirements for managing agents in connection with additional payments and informs the market that it will carry out sample audits of such audit returns from the first quarter of 2015.