Change of control for underwriting agents  

The approval of controlling interests in an underwriting agent requires both Lloyd’s approval (paragraph 43 of the Underwriting Byelaw) and the approval of the FSA. In very broad terms, the overriding principle is that where a company or individual acquires 10% or more of the shares and/or voting interests in an underwriting agent or approved run-off company or its parent company, the firm needs prior approval from the FSA and Lloyd’s.

What is the new process?
Where there is a proposed change of control in respect of an underwriting agent or approved run-off company, the following procedure should be adopted:

  1. Firm speaks informally to Lloyd’s Head of Risk Management or their Risk Executive to discuss a proposed change of control
  2. Firm completes electronic notification/application form (See the Notification of change of control form). By submitting the notification, the firm is giving confirmation that any tax implications have been explored with Lloyd’s Tax Department
  3. Unless Lloyd’s indicates within three business days that further information is required, the firm may submit its “Change of Control” application to the FSA
  4. Firm receives notification of approval from FSA
  5. Firm completes electronic confirmation form (See the confirmation of change of control form)
  6. Lloyd’s gives written approval of the change of control

 

Will I need to supply any additional information?
In most cases, Lloyd’s will not require further information beyond the basic information required on notification via Lloyds.com and Lloyd’s will rely on the firm obtaining FSA change of control approval when giving its own consent to the change of control. It should be noted, however, that in the case of a new majority controller, it is likely that Lloyd’s will still perform additional work.

Where can I find more information?
Market Bulletin Y4126 (60KB, pdf) was issued on 22 February 2008.
Last updated on 19 Jan 2010