Managing agent

Your first step is to reach out to Lloyd’s New Entrants team for an initial discussion to explore the core elements of your proposal, Lloyd’s requirements, timelines and processes.

Lloyd’s will then invite you to submit a Triage application (Triage submission templates can be viewed under ‘Useful Resources’ ) which must be submitted at least two days before the Triage meeting. You will not need to attend the meeting as your proposal will be reviewed by members of the Triage Group based on the documents you provide.

What you’ll need to submit:

• Triage Qualitative Submission template
• A detailed proposal including the rationale for establishing your managing agent
• A resource plan for key Senior Management Function (SMF) roles and governance structures

After Triage, as part of your initial enquiry we also recommend you attend a series of pre-application meetings with the PRA and FCA focussed on the regulatory application. Lloyd’s will facilitate these meetings and attend.

These pre-application meetings can include: an initial meeting, a feedback meeting, and a challenge meeting. These sessions provide opportunities to engage early with regulators, clarify expectations, and identify any gaps before submitting your formal application. The PRA and FCA will expect to see a regulatory business plan ahead of any meetings. The initial meeting is to discuss this plan and allow you to ask questions. Regulators provide written feedback for firms to address. The feedback meeting follows after the updated business plan is reviewed, and the challenge session occurs just before application submission, providing detailed challenge on the near-final plan. It is important to note that these meetings are not decision-making sessions but are designed to build confidence and demonstrate preparedness.

Purpose:

• Clarify regulatory expectations and the format of your application
• Identify any gaps before submitting your formal application
• Ensure there is a common understanding of your proposal, at a high level, across Lloyd’s, PRA, and FCA

How to prepare:

• Submit a concise overview of your proposal in advance (business model, governance, SMFs, financial strategy). The Triage submission to Lloyd’s should help you with this.
• Review PRA/FCA guidance on Threshold Conditions and authorisation requirements
• Prepare key questions on areas where you need clarity (e.g. IT readiness, governance expectations)

How to make the most of the pre-application meetings:

• Be transparent about any areas still in progress - regulators value honesty over perfection
• Ask for feedback on your proposed governance and SMF appointments
• Clarify timelines for both Lloyd’s and PRA/FCA processes to avoid surprises later
• Take notes and agree next steps - this meeting should help shape your application strategy

Why this matters:

A well-prepared pre-application meeting can accelerate authorisation, reduce the the risk of delays, and demonstrate to the regulatory bodies that your firm is “Ready, Willing and Organised” from the outset.

Members of the Business Opportunities Committee (BOC) will determine whether to recommend your application to the Council of Lloyd’s. You will attend this meeting which is typically one hour and consists of a 25-minute presentation delivered by you the applicant followed by questions from members of the BOC and the PRA and FCA. (BOC submission templates can be viewed under ‘Useful Resources’).

What you need to do:

• Show strategic clarity and progress on the development of your application
• Confirm credible appointments or where necessary, a credible recruitment path for Chair, CEO, CFO, iNEDs and other SMF roles
• Establish a governance structure that avoids ‘double-hatting’, ensures no gaps in responsibility and provides a comprehensive blend of leadership capabilities
• Provide realistic timelines for your launch and regulatory submission
• Present robust and credible financial planning, including:

        - Capital structure and investor strategy - show clear sources of capital and plans for attracting additional investment

        - Reinsurance arrangements - outline types, percentages, and rationale, ensuring alignment with your risk appetite

        - FSCS understanding and a robust run-off / recovery plan - provide a well-reasoned plan for managing obligations in stress scenarios, including links to FSCS processes

Why this matters:

• Strong governance, realistic timelines, and complete financial plans build confidence with Lloyd’s and regulators
• Applications that lack clarity or omit key details may face delays or additional scrutiny, so aim for transparency and thoroughness rather than perfection

At this stage the Council of Lloyd’s will review your application and, if successful, issue its ‘In-Principle’ approval for you to proceed with your regulatory application.

Following In-Principle approval from Council, you can now submit your formal regulatory application seeking Part 4A permissions to the PRA (copied to the FCA). More information on this process can be found on the PRA’s New Insurer Start-up Unit webpage. You will also submit the application for Lloyd’s review.

At this stage if you haven’t already appointed a project manager to oversee and coordinate the regulatory application and implementation, we would strongly advise you to do so.

You should aim to ensure your submission is as complete and comprehensive as possible, adhering to the PRA’s regulatory expectations.

Once your application has been received it will be reviewed for completeness and an initial assessment will be made.

The PRA statutory “clock” aligned to the Financial Services and Markets Act will start from the date you submit your regulatory application. All applications must either be approved or rejected within 12 months. The review will consist of a qualitative and quantitative assessment as to whether the application sufficiently addresses and evidences regulatory threshold conditions.

Once your application has been reviewed (a process which usually takes around 2-3 weeks) the PRA, in consultation with the FCA and Lloyd’s, will issue you with a formal “completeness” letter identifying elements of the application that remain outstanding and confirming the deadline by which the application must be completed.

Following receipt of the completeness response, we recommend that you provide a formal written response confirming how you plan to address any identified gaps and provide clarifications to any questions that have been raised. You will also be invited to attend a tripartite meeting with the PRA, FCA and Lloyd’s to discuss the status of your application, with the opportunity to ask questions and seek further guidance as required.

The PRA will formally confirm to you once the application is deemed complete (this usually happens in Phase two). Once deemed complete, there is a maximum six-month period during which the PRA must either approve or reject the application (to note: the six months is part of, and not in addition to, the original 12-month statutory timetable).

At this stage, you will focus on demonstrating robust governance and developing operational readiness. Lloyd’s will continue to be your main point of contact, with PRA/FCA input, as we undertake a comprehensive review of your application including:

• Principles review, delivered via engagement with Lloyd’s Subject Matter Experts
• IT readiness – assessed by Lloyd’s Operational Resilience team
• Senior appointments – assessed by Lloyd’s via interviews with selected key executives

The above dimensions are aligned to the regulatory Threshold Conditions, enabling Lloyd’s to coordinate a unified review process with the PRA and FCA. This integrated approach streamlines oversight, eliminates duplication and eases the burden on you, the applicant.

This phase focuses on you demonstrating your managing agent will be ready to operate from day one. Lloyd’s, in coordination with the PRA and FCA, will assess your application across governance, systems, and infrastructure. A regular cadence of ‘Making it Happen’ meetings will be set up to ensure all aspects of the managing agency build remain on track.

Lloyd’s will draft a ‘recommendation memo’ summarising the output of the review process that will be assessed by the UK regulatory authorities. The memo is a comprehensive document that addresses the extent to which each of the threshold conditions has been met, to enable the PRA (supported by the FCA) to arrive at a final approval decision. The PRA and FCA reserve the right to carry out their own Senior Management Function (SMF) appointments independently of Lloyd’s and may request additional information as they see fit.

• Once phase two is complete Lloyd’s will submit its recommendation to the regulators.
• The PRA will then, if it agrees with the recommendation, issue a decision letter authorising the managing agency and granting the appropriate permissions under Part 4A of the Financial Services and Markets Act 2000 (FSMA).
• Following BOC approval, Lloyd’s will in parallel, issue an approval letter authorising the managing agency to manage the syndicate from the target launch date.
• If the application is rejected the PRA will issue a formal decision letter stating the rejection of the application for Part 4A permissions. This letter will outline the reasons for the rejection, referencing the areas where the application failed to meet the Threshold Conditions or other regulatory expectations. Applicants are given the opportunity to respond formally to the PRA’s concerns and request a meeting to discuss the decision and explore options for remediation. If the FCA or PRA do decide to explore the route of rejection, the applicant will be informed well in advance. This allows them sufficient time to consider their options and determine the most constructive way to move forward with the application.

Post-authorisation, you must continue to deliver all remaining operational, legal and PBO requirements in advance of the launch date. This includes:

• Completion of legal and data transfers if you are novating a syndicate from a turnkey managing agent. The novation legally transfers all rights, obligations, and liabilities to you as the new managing agent.
• Ensuring that all other operational, IT, and legal aspects have been successfully actioned, and documentation is finalised and executed
• Ensure any PBO deliverables are completed

You are now ready to assume the management of your syndicate(s) at Lloyd’s.

A final note

• Be ready, willing, and organised: this is not just a principle—it is a regulatory expectation
• Build credible teams and governance structures: independence and clarity in decision-making are essential
• Plan meticulously with detailed operational, financial, and strategic plans to ensure your application is robust
• Engage proactively with Lloyd’s and the UK Regulators: early discussions with PRA/FCA and Lloyd’s can help address questions and issues prior to formal submission
• Be realistic when it comes to timelines.  Your ability to meet deadlines demonstrates competence and credibility

Lloyd’s fees

• Application fee: £300,000 (non-refundable, VAT not applicable)
• Fee is invoiced once BOC recommends your application to Council
• Lloyd’s does not levy charges on managing agents once they are approved; Lloyd’s operational costs and contributions to the Central Fund are paid by members of the Society.  This is currently set at 1% of Gross Written Premium (there are also a number of ‘user pay’ charges)
• Fees are reviewed annually and issued to the market in September via a Market Bulletin

PRA & FCA fees

Fees charged by the FCA and PRA can be found on their websites.

PRA fees FCA fees