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 PRA, FCA and Lloyd’s.
Requirements & Standards
View all 'Requirements & Standards'What is the 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:
- Informal notification to the Market Governance, Risk and Resilience team and Account Manager;
- Electronic notification to Lloyd’s of the intention to change a controller and confirmation that any tax implications have been explored with Lloyd’s Tax Department;
- Detailed due diligence is then undertaken by Lloyd’s who may ask for further information or documentation at any stage of the review (further information on potential areas for consideration are detailed below);
- Once the firm submits the application to the PRA and FCA the relevant section 178 form and all associated documentation should also be shared with Lloyd’s;
- The firm notifies Lloyd’s when PRA and FCA approval is granted; and
- Lloyd’s gives written approval once satisfied with all aspects of the transaction (including financing, Group and investors);
- Lloyd’s reserves the right to reject an application or perform additional due diligence as material information is presented.
View 'Notification of proposed change of control' formContact us
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