The Association of Lloyd's Members (ALM) has claimed there is little chance of the proposed Lloyd's Act, despite a majority EGM ruling.
The ALM said that the resolution was carried on a capacity basis, and were unhappy that only 1393 voted for it, and 3356 voted against it.
An ALM statement said: "There is little prospect of the proposed new Lloyd's Act in the near future. Secondly, Lloyd's will have to reconsider its controversial regulatory proposals, which in any event have yet to be approved by the FSA."
The statement continued: "Lloyd's has stated that a new Lloyd's Act would require the approval of 75% of the Members of Lloyd's on a one member one vote basis. Since Names have made it clear that their objection to a new Lloyd's Act was a key reason for their opposition to the Lloyd's EGM resolution, the fact that only 29% of Members voted for the resolution means that at present Lloyd's has no prospect of obtaining approval for a new Act."
ALM Chairman Michael Deeny said: "We would hope that the Council will use the Franchise Board to improve the profitability of Lloyd's, but will reconsider the more controversial proposals, such as a new Lloyd's Act. The ALM will make no further comment on these issues for the time being and will have a series of meetings with Lloyd's to seek a constructive and united way forward."
