Regulatory team collects data in series of visits

The FSA has launched a series of probes into the way in which Lloyd's managing agents run their businesses.

The investigations are taking the form of a series of 'arrow' visits to Lloyd's underwriters.

The purpose of the visits is to enable the FSA to collect data and other information, including control charts.

The first round of visits to six managing agents has already taken place.

The FSA will also use the visits to solicit feedback on its proposed regulatory regime, in particular CP178, which outlines its regulatory guidelines for the Lloyd's Market.

A Lloyd's Market Association (LMA) spokesman confirmed that the first set of 'arrow' visits to a half dozen randomly-selected managing agents had recently been completed.

He refused to name the six underwriters involved, but confirmed that the FSA was expecting to visit every managing agent by 2003.

The first round of visits involved underwriters representing a cross-section of the market.

"The FSA visited a number of significant Lloyd's insurers, including quoted companies, as well as a number of smaller players", said the LMA spokesman.

As well as collecting data during the visits, the FSA is also seeking responses to its proposed regulatory regime.

Of particular relevance to Lloyd's insurers is CP178, which deals with the future regulation of managing agents.

The LMA is currently co-ordinating Lloyd's managing agents feedback to the FSA.

"Our members are broadly supportive of the proposals. CP178 has been well-researched by the FSA, but there are a number of matters of detail and other nuances that need to be addressed," said the LMA spokesman.

"We are also currently working to ensure that regulation by both the FSA and Lloyd's is not duplicated."