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121/08

19 November 2008

Modernisation of Lloyd’s of London

Financial Services Secretary to the Treasury Paul Myners, today welcomed the coming into force of a Legislative Reform Order (LRO) that will modernise the operation of Lloyd’s of London.

The LRO updates governance provisions in the Lloyd’s Act 1982, to reflect changes in the regulatory environment, and to remove restrictions which get in the way of the future development of the insurance market.

Paul Myners  said:

"Maintaining the City’s competitiveness is a key priority for the Government. These changes will help Lloyd’s to maintain and enhance its position in the global insurance market. I am delighted that the Government’s proposals have received such widespread support."

The coming into force of the LRO follows a public consultation by HM Treasury, and approval by both Houses of Parliament.

Notes for Editors

1.       In recent years, Lloyd’s has undertaken a major programme of reforms, geared to updating the marketplace and maintaining its  global competitiveness. These were initiated as a result of the Chairman’s Strategy Group (which reported in 2002) and have been taken forward as a rolling series of three-year business plans, focussing on five core components of Lloyd’s business, including performance management and improving the efficiency and effectiveness of Lloyd’s operating environment.

2.       To complement these market based and market led initiatives, the Government agreed in June 2007 that it would bring forward proposals with the aim of updating and streamlining Lloyd’s governance procedures and removing unnecessary restrictions on how it organises its affairs. 

3.       A Legislative Reform Order is a Statutory Instrument made under the Legislative and Regulatory Reform Act 2006.

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

5.       More information about the consultation and the results 

6.       The House of Commons report (Parliament website, opens in a new window)

7.       The House of Lords report (Parliament website, opens in a new window)

 

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