On 7 March the UK Treasury published its awaited market reform proposals in the consultation paper, "Proposals for a legislative reform order to amend the Lloyd's Act 1982". The eight part reform document is open to consultation for the next 12 weeks until May 30th 2008.
The document proposes reforms in various areas. Some of the key proposals are to:
- ensure a streamlined regulatory approach by eliminating rule duplication where the FSA and Lloyd's frameworks;
- relax the rule requiring the chairman and deputy chairman to be working members of Lloyd's so that non working members of the Council can fill these posts and include outsiders on disciplinary committees (Please click here to see previous post on this issue);
- liberalise the Lloyd's market by allowing Lloyd's underwriters to accept risks from non-Lloyd's admitted brokers (while Lloyd's brokers will still exist for intermediaries who wanted to bear that title);
- remove rules prohibiting associations between Lloyd's brokers and managing agents.
The Exchequer Secretary said the proposals "will help Lloyd's to continue to compete in the global insurance market of the 21st century". For further details of the proposal please click here.