The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2004

6.—(1) Section 232(1) (disclosure required in notes to accounts: emoluments and other benefits of directors and others) is modified as follows –

(a) For subsection (1) there shall be substituted the following—

“(1) The information specified in subsection (2) must be given in notes to the syndicate’s annual accounts.”;

(b) For subsection (2) substitute the following—

“(2) That information is—

(a) the aggregate amount charged to a syndicate by its managing agent, in respect of emoluments paid to the managing agents' directors, the active underwriter and (where applicable) the run-off manager of the syndicate, in the last financial year;

(b) the specific amount charged to a syndicate by its managing agent in respect of emoluments paid to the syndicate’s active underwriter and (where applicable) its run-off manager in the last financial year.”;

(c) for subsection (3) substitute the following—

“(3) In this section “emoluments”—

(a) includes salaries, fees and bonuses, sums paid by way of expenses allowance (so far as they are chargeable to United Kingdom income tax) and, subject to paragraph (b), the estimated money value of any other benefits received by him otherwise than in cash; but

(b) does not include any of the following, namely—

(i) the value of any share options granted or the amount of any gains made on the exercise of any such options;

(ii) any contributions paid, or treated as paid, in respect of him under any pension scheme or any benefits to which he is entitled under any such scheme; or

(iii) any money or other assets paid, received or receivable under any long term incentive scheme.”; and

(d) subsection (4) is omitted.

(2) In this paragraph—

“active underwriter” means, in relation to a syndicate, the individual at or deemed by the Council to be at, the underwriting box with principal authority to accept risks on behalf of the members of the syndicate;

“run-off manager” means, in relation to a run-off syndicate, the person who has principal authority to negotiate or place contracts of reinsurance or negotiate and settle the payment of claims on contracts of insurance or reinsurance on behalf of the members of a syndicate;

“run-off syndicate” means a syndicate which no longer accepts new or renewal insurance business (other than the variation or extension of risks previously underwritten, or reinsurance to close of an earlier year of account of that syndicate).

(1)

Inserted by the Companies Act 1989 and amended by S.I. 2002/1986