1. Every managing agent shall cause accounting records to be kept in accordance with this paragraph in respect of each syndicate for the time being managed by it.
2. The accounting records shall be sufficient to show and explain the transactions entered into on behalf of the members of the syndicate.
3. The accounting records shall be such as to -
(a) be capable of disclosing with reasonable accuracy at any time the financial position at that time of each member of the syndicate; and
(b) enable the managing agent to ensure that any syndicate annual accounts, underwriting year accounts and personal accounts prepared by it comply with the requirements of the Lloyd’s Syndicate Accounts Regulations or this [Syndicate Accounting part of the Consolidated Requirements], as applicable.
4. Without limiting the generality of [2. and 3. above], the accounting records shall contain -
(a) entries from day to day of all sums of money received and expended by the managing agent for the account of the members of the syndicate and the matters in respect of which the receipt or expenditure took place;
(b) entries from day to day, identified by year of account and by class of business, of transactions processed which affect the profit and loss account;
(c) a record of the assets and liabilities of the members of the syndicate; and
(d) calculations and other relevant information relating to each reinsurance to close and each amount retained to meet known and unknown liabilities.
5. All accounting records which a managing agent is required by this byelaw to keep shall be preserved by it for not less than the appropriate period; and for this purpose “the appropriate period” means, in relation to any such accounting records, the period for which a prudent underwriting agent in the position of the managing agent would consider it necessary to preserve those accounting records in order properly to fulfil its obligations to members for whom it acts as underwriting agent at Lloyd’s and in any case, not less than six years from the date on which they are made.