Legislative Reform Order to modernise Lloyd´s of London laid before Parliament

Economic Secretary to the Treasury, Kitty Ussher MP, today laid before Parliament a draft Legislative Reform Order (LRO) taking forward proposals to modernise the operation and governance of Lloyd's of London.

Kitty Ussher said:

"The Government is committed to maintaining the City's competitiveness, and the Legislative Reform Order will help Lloyd's of London maintain and enhance its position in the global insurance market.

I am delighted that the Government's proposals, which will strengthen the governance arrangements at Lloyd's and assist the future development of the Lloyd's insurance market, have received such a wide degree of support."

The laying of the LRO follows a public consultation by HM Treasury. The LRO will now be scrutinised and debated by both Houses of Parliament.

Notes for editors

1. The consultation and the results of the consultation.

2. A Legislative Reform Order is a Statutory Instrument made under the Legislative and Regulatory Reform Act 2006. A legal analysis of the conditions an Order must satisfy is set out in chapter 2 of the consultation document.

3. The draft Order will implement the following eight reforms:

relax the rule requiring the Chairman and Deputy Chairmen to be working members, so that these posts may be filled by any member of the Council, provided always that one of the Chairman and Deputy Chairman is a working member;
remove restrictions on elections to the Council affecting working members, to permit more flexibility and greater alignment with the Combined Code;
remove the requirement for the Governor of the Bank of England to approve appointments of nominated members of Council, as this duplicates the Financial Services Authority's approval process;
remove the provisions relating to the Committee of Lloyd's;
modernise and streamline the Council's delegation powers, while preserving the Council's existing reserved powers;
ease restrictions on the composition of Disciplinary Committees.
remove the restriction that requires managing agents generally to accept business only from a Lloyd's broker, while retaining the class of "Lloyd's broker" for brokers that want to bear the title of "Lloyd's broker"; and
remove the divestment provisions (which prohibit prescribed associations between Lloyd's brokers and managing agents).

4.Proposals for a Legislative Reform Order to amend Lloyd´s Act 1982.

5. Media enquiries should be addressed to the Treasury Press Office on 020 7270 5238.

6. Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hm-treasury.gov.uk

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Media enquiries should be addressed to the Treasury Press Office on 020 7270 5238.