The FSA said today that it taken steps towards implementing its new prudential requirements for Lloyd's insurance business.
The watchdogs insurance sector leader David Strachan said the proposals set out in the document CP 190 would help Lloyd's to focus its responsibilities when regulation comes into effect.
The proposed rules will require managing agents to:
·Maintain appropriate control over syndicates including managing risks
·Assess the capital needed to support each syndicate that they manage
The proposed rules for the Society will require it to:
·Maintain appropriate controls over the funds that it controls and manages centrally
·Assess the capital needs for each member, taking into account the capital need for each syndicate assessed by managing agents
Strachan said: “The new arrangements involve a step change from previous practice and will come into effect from 1 January 2005. Given this timescale it is vital that senior management engage with our proposals positively and quickly.”
