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Chapter LLM1160

Cited authorities 2 Cited in Related
Vincent
Published date10 April 2016
Record NumberLLM1160
CourtHM Revenue & Customs
The Council of Lloyd’s

The Council of Lloyd’s is the governing body of the Society, under the Lloyd’s Act 1982 (LLM1010), responsible for the management and superintendence of the affairs of the Society. It has the power to regulate and direct the business of the market, and the power to make byelaws. The market’s rules are set out in these byelaws, and in other guidance, codes of conduct and bulletins issued by the Council or under its authority.

The Council has a number of working, external and nominated members, and exercises its functions through a number of committees.

Since 2001, regulation of the market has been undertaken under the direction of the Financial Services Authority (FSA). Since 2003, the Council has increasingly taken responsibility for the commercial performance of the market, via its Franchise Board.

The day to day functions required to support the market are carried on by the Corporation of Lloyd’s (LLM1170).

The Financial Services Authority (FSA)

The Financial Services and Markets Act 2000 (FSMA 2000) brought Lloyd’s within the scope of the Financial Services Authority’s (FSA’s) regulation from 1 December 2001. GIM3000+ in the General Insurance Manual (see LLM10000) has more details on the role of the FSA. To avoid duplication, the FSA supervises the market but delegates much of its regulatory responsibility to the Council of Lloyd’s.

The FSA oversees Lloyd’s regulation to ensure consistency with general standards infinancial services. Under Part 19 of FSMA 2000, the Society of Lloyd’s is an‘authorised person’ with ‘permission’ to arrange deals in contracts ofinsurance written at Lloyd’s, arrange deals in participation in Lloyd’ssyndicates, and to carry on connected activities. Chapter 13 of the FSMA 2000 (RegulatedActivities) Order 2001 (the ‘RAO’, SI2001/544) includes the activities ofmembers’ and managing agents, and of the Society itself in the list of specified‘regulated activities’. Under Article 86 of the RAO, underwriting capacity, andmembership, of a...

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