Skip to main content

Miscellaneous Provisions

Provisions relating to byelaws

Promulgation and maintenance of byelaws and regulations
1. The Council shall promulgate a new byelaw or regulation by posting a copy in the Room and by making the same available online on the Society’s website.

2. The Council shall maintain, whether electronically or otherwise, a volume of byelaws and regulations which shall be available for inspection by any person during reasonable hours.

The Financial Conduct Authority and Prudential Regulation Authority
3. So far as it is possible to do so, every requirement of the Council must be read and given effect by the Council in a way which is compatible with the provisions of the Financial Services and Markets Act 2000 and any applicable rule, direction, requirement, principle, evidential provision, code and guidance made, issued or given by the Financial Conduct Authority and / or the Prudential Regulation Authority under that Act.

4. If the Council is satisfied that any requirement of the Council is incompatible with any provision of the Financial Services and Markets Act 2000 or any rule, direction, requirement, principle, evidential provision, code or guidance made, issued or given by the Financial Conduct Authority and / or the Prudential Regulation Authority under that Act the Council may dispense any person to whom the requirement applied or applies from complying with the requirement with effect from the day on which the incompatibility arose.

5. Any dispensation given under [3. above] –

(a) may be made individually or in respect of any class or classes of person;

(b) may make different provision for different cases; and

(c) may include such additional directions, conditions or requirements as the Council considers necessary or appropriate.

6. The Council may, for the purpose of giving effect to, implementing or discharging any direction, requirement or obligation that the Financial Services and Markets Act 2000 or the Financial Conduct Authority or the Prudential Regulation Authority has given to, placed on or imposed on the Council or the Society, give a direction to any person or any class or classes of person carrying on the business of insurance at Lloyd’s to do such acts and things as may be necessary or appropriate.

Waiver

7. The Council may at any time direct that, to the extent specified, any person shall be dispensed from compliance with any provision of any requirement of the Council if it considers that –

(a) compliance would be unduly burdensome on the person in relation to whom the dispensation is to apply having regard to the benefit that compliance would confer on members or Lloyd’s policyholders; and

(b) the dispensation will not result in any undue risk to any member or any Lloyd’s policyholder.

8. Any directions given under [7. above] –

(a) may be made individually or in respect of any class or classes of persons;

(b) may be varied or revoked from time to time in whole or in part or as to any period, condition or requirement;

(c) may make different provisions for different cases; and

(d) may include provisions for the disclosure to any persons whether by the person to whom the direction is given or by the Council of the circumstances and details of the dispensation including the disclosure of the name of the person to whom the direction is given.

Confidentiality

1. For the purposes of this [paragraph 1. to 9. below], ‘confidential information’ means all material or information (whether in oral or written form or recorded in any other medium) which is designated in writing as confidential or would reasonably be understood to be confidential given the nature of the information and the circumstances of disclosure and includes (but is not limited to) –

(a) in relation to the Council, Society or a person (to the extent applicable in each case), information relating to the Council, the Society or the person’s products, trade secrets, know-how, finances, business plans, employees, officers and suppliers, and similar information regarding its group companies (as defined below) or customers; and

(b) in relation to the Council or the Society, information relating to the exercising of any powers to advance, protect, manage or superintend the affairs of the Society, or to regulate or direct the business of insurance at Lloyd’s and information concerning the business, finances, dealings, transactions or affairs of members of the Lloyd’s community and anything ancillary thereto. 

For the purposes of [this paragraph 1., and 2. and 4. below] ‘group companies’ shall have the meaning as set out in Section 474 of the Companies Act 2006.

Disclosure of confidential information to the Council
2. The Council shall keep confidential any confidential information disclosed to it by a person and shall not without the prior consent of the person directly or indirectly –

(a) disclose such confidential information to any person other than to the Society’s employees, workers, agents, contractors, sub-contractors, service providers, group companies of the Society, professional advisors, consultants, directors, officers, other personnel, or to secondees to the Society who need to know the confidential information in connection with the reason for its disclosure provided that such persons are under similar obligations of confidentiality as contained in this [this Confidentiality section (paragraphs 1. to 9.)]; or

(b) copy or modify or use (or permit others to do so) any part of that confidential information save as necessary in the exercise of any powers to advance, protect, manage or superintend the affairs of the Society or to regulate or direct the business of insurance at Lloyd’s and anything ancillary thereto and provided that any copies or modifications shall be held treated as confidential information.

3. Paragraph [2. above] shall not apply to –

(a) any confidential information which is in or enters the public domain other than by breach of [2.] above;

(b) any confidential information which was in the possession of the Society prior to the date of receipt of the confidential information and was not held under any obligation of confidence to the person; 

(c) any confidential information which is received from any third party who lawfully acquired it and who is under no obligation restricting its disclosure; 

(d) the disclosure of confidential information to the extent properly required by any applicable law, regulation, criminal proceedings or enforcement proceedings or in accordance with the requirements of or proper request from any regulatory body, taxation authority, government body, stock exchange or court of competent judicial authority;

(e) the disclosure of any confidential information for the purpose of assisting the Financial Conduct Authority or Prudential Regulatory Authority or any body which performs any corresponding functions outside the United Kingdom; 

(f) the disclosure of any confidential information for the purpose of advancing and protecting the interests of the Society provided such disclosure has been authorised by the Council; and 

(g) the disclosure of any information which is independently developed by or on behalf of the Council without access to the confidential information.

Requirements to protect the confidentiality of information disclosed by the Council
4. A person shall keep confidential any confidential information disclosed to it by the Council or the Society and shall not without the prior consent of the Council directly or indirectly –

(a) disclose such confidential information to any other person other than to the person’s employees, workers, agents, contractors, sub-contractors, service providers, group companies of the person, professional advisors, consultants, directors, officers, other personnel or to secondees to the person who need to know the confidential information in connection with the reason for its disclosure provided that such persons are under similar obligations of confidentiality as contained in [this Confidentiality section (paragraphs 1. to 9.)];

(b) copy or modify or use (or permit others to do so) any part of that confidential information save as necessary for the performance of the person’s obligations in connection with the reason for its disclosure and provided that any copies or modifications shall be treated as confidential information.

5. A person receiving confidential information from the Council or the Society shall comply with any requirements of the Council that the Council may make in connection with the disclosure of confidential information to that person as may, in the view of the Council, be necessary to protect the confidentiality of that confidential information and shall establish and maintain adequate security measures to safeguard the confidential information of the Council or the Society in its possession from unauthorised access, disclosure, use, copying or modifying.

6. Paragraph [4. above] above shall not apply to –

(a) any confidential information which the person can show is in or enters the public domain other than by breach of paragraph [4.] above;

(b) any confidential information which the person can show was in its possession prior to the date of receipt of the confidential information and was not held under any obligation of confidence to the Society;

(c) any confidential information which is received from any third party who lawfully acquired it and who is under no obligation restricting its disclosure;

(d) the disclosure of confidential information to the extent properly required by any applicable law, regulation, criminal proceedings or enforcement proceedings, or in accordance with the requirements of or proper request from any regulatory body, taxation authority, government body, stock exchange or court of competent judicial authority; or

(e) the disclosure of any information which the person can show it independently developed without access to the confidential information,

provided that except where prohibited by any applicable law or regulation, where a person is required to disclose confidential information pursuant to [(d) above], the person shall provide the Council with prompt written notice of such request or requirement with a view to providing the Council with the opportunity to take such steps as the Council considers appropriate or otherwise to agree the timing and content of such disclosure.

7. If the person is unable to inform the Council before confidential information is disclosed pursuant to [6.(d) above] it shall, to the extent permitted by law, inform the Council of the full circumstances of the disclosure and the confidential information that has been disclosed as soon as reasonably practicable after such disclosure has been made.

8. In the event that such disclosure is required under [6.(d) above] the person may disclose only that portion of the confidential information which the person is legally required to disclose.

Power to make requirements and enter into agreements
9. Notwithstanding any other provision of [this Confidentiality section (paragraphs 1. to 9.)], the Council shall have the power to:

(a) give directions, impose conditions or make requirements; or

(b) enter into contractual terms with a person on behalf of the Society, 

in relation to any confidential information, the terms of which shall, in the event of conflict, take precedence over the requirements set out in [this Confidentiality section (paragraphs 1. to 9.)].


Premiums Trust Funds

Directions, conditions and requirements relating to the regulating trustee
10. The Council may at any time give such directions or impose such conditions or requirements in connection with any discretion, power or authority which the regulating trustee has in relation to any premiums trust deed and whoever exercises that discretion, power or authority shall act in accordance with any such direction, condition or requirement.

11. Any delegation or sub-delegation of any discretion, power or authority which the regulating trustee has in relation to any premiums trust deed shall include a provision that the delegate or sub-delegate shall act in accordance with any direction condition or requirement given or imposed under [10. above].

Prescription of notifiable events and nomination of company
13. The Council may –

(a) prescribe any matter as a ‘notifiable event’ for the purposes of one or more premiums trust deeds;

(b) nominate any company for the purposes of one or more premiums trust deeds as a person with whom premiums trust funds may be deposited or to whom premiums trust funds may be lent.

Annual accounts

Accounts
14. The Society shall prepare annual accounts made up to the 31st day of December so as to show a true and fair view of the income and expenditure of the Society for the year and its state of affairs and such accounts shall be approved by the Council.

Audit
15. The Council shall appoint auditors who shall report whether in their opinion the accounts give a true and fair view of the income and expenditure of the Society and of its state of affairs.

16. A person shall be eligible for appointment as auditors where that person is eligible for appointment as a company auditor under sections 1209, 1212, 1213 and 1216 of the Companies Act 2006, provided that a person eligible only by reason of subsection 1212(2) shall not be eligible.

Power to require production of reports

17. Without prejudice to any other provisions in other byelaws, the Council may prescribe requirements for or direct a person (or any group or class thereof) to provide reports to the Council providing information on a person’s business at Lloyd’s. The requirements may include but shall not be limited to –

(a) the period or periods to which each report is to relate or be made up to;

(b) the format and content of each report;

(c) the examination of the report by the directors of a person who is a body corporate and the completion of a declaration by them;

(d) the date or dates on which each report is to be submitted to the Council; and

(e) the person or the class of persons to which the requirement to provide information apply.