We have reported previously on the progress of the Lloyd's Legislative Reform Order (LRO) through Parliament (our most recent post can be found by clicking here). The LRO came into force today, Wednesday 19 November 2008. As we have reported previously, the LRO will:
- remove the restriction that requires managing agents to accept business only from a Lloyd's broker;
- remove the divestment provisions in Lloyd's Act 1982 (which prohibited most associations between managing agents and Lloyd's brokers); and
- make a number of changes to Lloyd's governance structure.
Lloyd's is currently consulting on changes to its own rules to match the LRO and these are expected to come into force in January.