Transparency is the best asset the London market has
The passing of the Bribery Act onto the statute books next month has thrown the issue of transparency and broker remuneration into sharp relief. So much so that the Lloyd’s Market Association recently instructed a leading law company to give its expert guidance.
What struck me most, when reading through this legal advice, was how well established the law at the heart of the debate is, and how straightforward.
In broad terms, an agent must act in good faith and account to its principal; it must make no secret profit from its position; and it must disclose any conflicts of interest.
Some in the market have sought to introduce complications, thereby creating a degree of uncertainty. But to my mind, the common law speaks plainly enough: transparency is the key.
And transparency is ultimately one of the greatest assets the Lloyd’s and London markets possess.
David Gittings is Lloyd’s Market Association’s chief executive