Managing agents confused by missing broker authorisation letters
Up to a quarter of Lloyd's brokers have yet to receive their 'minded to authorise' letters from the FSA. This has left some managing agents "without an action plan" to deal with the uncertainty.
According to sources, as many as 40 Lloyd's brokers have not yet received the letter indicating that they are likely to be authorised to trade from 14 January.
As a result, managing agents do not know whether they are able to deal with these brokers now in anticipation of renewals due once regulation begins.
The compliance director of a leading managing agent said: "We do not have an action plan to deal with this uncertainty. We are just expecting these brokers to be authorised."
He added that this was a "market issue" and should be dealt with by Lloyd's.
Mark Grice, partner at accountancy firm Mazars said: "People in the Lloyd's market are not too happy with the delay.
"The brokers are a bit nervous about it and the managing agents are carrying on as if they will be authorised.
"If the FSA starts asking questions of brokers at this stage there will be problems."
But Ascot chief executive Martin Reith said there had been a "flurry of activity" in the last seven days and that that only three of the broker's Ascot deals with had yet to receive 'minded to authorise' letters.