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PART XVIII |
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LLOYD'S |
| General |
Authority's general duty. |
289. - (1) The Authority must keep itself informed about- |
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(a) the way in which the Council supervises and regulates the market at Lloyd's; and |
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(b) the way in which regulated activities are being carried on in that market. |
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(2) The Authority must keep under review the desirability of exercising- |
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(a) any of its powers under this Part; |
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(b) any powers which it has in relation to the Society as a result of section 290. |
| The Society |
The Society: authorisation and permission. |
290. - (1) The Society is an authorised person. |
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(2) The Society- |
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(a) has permission to carry on a regulated activity of any of the following kinds- |
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(i) arranging deals in contracts of insurance written at Lloyd's ("the basic market activity");
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(ii) arranging deals in participation in Lloyd's syndicates ("the secondary market activity"); and
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(iii) an activity carried on in connection with, or for the purposes of, the basic or secondary market activity; and
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(b) must be issued by the Authority with a certificate of authorisation. |
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(3) For the purposes of Part IV, the Society's permission is to be treated as if it had been given on an application for permission under that Part. |
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(4) The power conferred on the Authority by section 40 may be exercised in anticipation of the coming into force of the Society's permission (or at any other time). |
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(5) The Society is not subject to any requirement of this Act concerning the registered office of a body corporate. |
| Power to apply Act to Lloyd's underwriting |
Direction by Authority. |
291. - (1) The general prohibition or (if the general prohibition is not applied under this section) a core provision applies to the carrying on of an insurance market activity by- |
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(a) a member of the Society, or |
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(b) the members of the Society taken together, |
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only if the Authority so directs. |
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(2) A direction given under subsection (1) which applies a core provision is referred to in this Part as "an insurance market direction". |
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(3) In subsection (1)- |
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"core provision" means a provision of this Act mentioned in section 292; and |
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"insurance market activity" means a regulated activity relating to contracts of insurance written at Lloyd's. |
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(4) In deciding whether to give a direction under subsection (1), the Authority must have particular regard to- |
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(a) the interests of policyholders and potential policyholders; |
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(b) any failure by the Society to satisfy an obligation to which it is subject as a result of a provision of the law of another EEA State which- |
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(i) gives effect to any of the insurance directives; and
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(ii) is applicable to an activity carried on in that State by a person to whom this section applies;
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(c) the need to ensure the effective exercise of the functions which the Authority has in relation to the Society as a result of section 290. |
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(5) A direction under subsection (1) must be in writing. |
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(6) A direction under subsection (1) applying the general prohibition may apply it in relation to different classes of person. |
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(7) An insurance market direction- |
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(a) must specify each core provision, class of person and kind of activity to which it applies; |
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(b) may apply different provisions in relation to different classes of person and different kinds of activity. |
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(8) A direction under subsection (1) has effect from the date specified in it ("the effective date"), which may not be earlier than the date on which it is made. |
The core provisions. |
292. - (1) The core provisions are Parts V, IX, X, XI, XX and XXIV. |
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(2) References in an applied core provision to an authorised person are (where necessary) to be read as references to a person in the class to which the insurance market direction applies. |
Exercise of powers through Council. |
293 - (1) The Authority may give a direction under this subsection to the Council or to the Society (acting through the Council) or to both. |
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(2) A direction under subsection (1) is one given to the body concerned- |
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(a) in relation to the exercise of its powers generally with a view to achieving, or in support of, a specified objective; or |
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(b) in relation to the exercise of a specified power which it has, whether in a specified manner or with a view to achieving, or in support of, a specified objective. |
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(3) "Specified" means specified in the direction. |
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(4) A direction under subsection (1) may be given- |
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(a) instead of giving a direction under section 291(1); or |
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(b) if the Authority considers it necessary or expedient to do so, at the same time as, or following, the giving of such a direction. |
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(5) A direction may also be given under subsection (1) in respect of underwriting agents as if they were among the persons mentioned in section 291(1). |
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(6) A direction under this section- |
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(a) does not, at any time, prevent the exercise by the Authority of any of its powers; |
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Consultation. |
294. - (1) If the Authority proposes to give a direction under section 291 or 293, it must publish a draft of the proposed direction. |
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(2) The draft must be accompanied by- |
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(a) an estimate of the costs, and an analysis of the benefits, that will arise if the direction is given ("a cost benefit analysis"); and |
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(b) a statement that representations about the proposed direction may be made to the Authority within a reasonable time. |
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(3) Before giving the proposed direction, the Authority must have regard to any representations made to it in accordance with subsection (2)(b). |
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(4) If the Authority gives the proposed direction it must publish a statement describing, in general terms- |
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(a) the representations made to it in accordance with subsection (2)(b); and |
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(b) its response to them. |
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(5) If the direction differs from the draft published under subsection (1) in a way which is, in the opinion of the Authority, significant- |
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(a) the Authority must publish a statement of the difference; and |
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(b) the statement must be accompanied by a cost benefit analysis. |
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(6) Subsections (1) to (5) do not apply if the Authority considers that the delay involved in complying with them would be prejudicial to the interests of consumers. |
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(7) Subsection (2)(a) does not apply if the Authority considers that the costs incurred by those who would be affected by the proposed direction, if it were to be given- |
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(a) would be less, or no more, than costs presently incurred by them ("present costs"); or |
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(b) would result in an increase in present costs which is of minimal significance. |
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(8) The Authority may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1). |
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(9) When the Authority is required to publish a document under this section it must do so in the way appearing to it to be best calculated to bring it to the attention of the public. |