New rules cut accreditation time from two months to two weeks

The number of brokers that are able to directly access Lloyd's is expected to rise after the corporation slashed the accreditation time for brokers.

Under new rules, which came into force on 2 April, brokers wishing to become Lloyd's accredited will have to wait only one to two weeks for necessary approval. This has been cut from two months.

Sean McGovern, Lloyd's director and general counsel, said: "For new brokers wishing to trade at Lloyd's we are maintaining appropriate, prudent entry standards that are proportionate to the risks involved."

But he added: "Lloyd's is moving away from a system of accreditation to a simple system of registration. We are scaling back our activities in terms of brokers, who wish to transact business at Lloyd's, in recognition of the work that the FSA already does."

McGovern said one of the key priorities of the Lloyd's three-year plan was to make it an easier and more efficient place to do business.

The streamlined broker application process, which follows a review by Lloyd's into the extent of unnecessary duplication between Lloyd's and the FSA, is expected to increase the number of brokers that transact business in the market.

In addition, the process will make it more straightforward for an overseas subsidiary of a multinational broking group to do business directly with Lloyd's.

McGovern said: "One of the things currently being debated is the future business model for global broking.

"And one of the things that we are anticipating is that there is likely to be an increasing trend towards business being placed in London directly by overseas brokers, rather than the more traditional route of a wholesale broker.

"This step will allow Lloyd's to remain attractive to business coming in internationally."

The new process is also set to affect the 167 registered Lloyd's brokers, since the routine annual reporting requirements will be removed along with the annual broker questionnaire, which allow brokers to continue to trade at Lloyd's.