Part XIX Lloyd’s

Power to apply Act to Lloyd’s underwriting

316 Direction by F1a regulator

(1)

The general prohibition or (if the general prohibition is not applied under this section) a core provision applies to the carrying on of an insurance market activity by—

(a)

a member of the Society, or

(b)

the members of the Society taken together,

only if F2a regulator so directs.

F3(1A)

A direction under subsection (1)—

(a)

may be given by the FCA only if it considers that giving the direction is necessary or expedient for the purpose of advancing one or more of its operational objectives, and

(b)

may be given by the PRA only if it considers that giving the direction is necessary or expedient for the purpose of advancing its general objective or (if section 2C applies) the insurance objective.

(1B)

A direction under subsection (1) which applies the general prohibition to a member of the Society, or to the members of the Society taken together, may be given by a regulator only with the consent of the other regulator.

(2)

A direction given under subsection (1) which applies a core provision is referred to in this Part as “an insurance market direction”.

(3)

In subsection (1)—

“core provision” means a provision of this Act mentioned in section 317; and

“insurance market activity” means a regulated activity relating to contracts of insurance written at Lloyd’s.

(4)

In deciding whether to give a direction under subsection (1), F4the regulator concerned must have particular regard to—

(a)

the interests of policyholders and potential policyholders;

(b)

any failure by the Society to satisfy an obligation to which it is subject as a result of a provision of the law of another EEA State which—

(i)

gives effect to F5the Solvency 2 Directive; and

(ii)

is applicable to an activity carried on in that State by a person to whom this section applies;

(c)

the need to ensure the effective exercise of the functions which F4the regulator concerned has in relation to the Society as a result of F6provision made by or under this Act.

(5)

A direction under subsection (1) must be in writing.

(6)

A direction under subsection (1) applying the general prohibition may apply it in relation to different classes of person.

(7)

An insurance market direction—

(a)

must specify each core provision, class of person and kind of activity to which it applies;

(b)

may apply different provisions in relation to different classes of person and different kinds of activity.

(8)

A direction under subsection (1) has effect from the date specified in it, which may not be earlier than the date on which it is made.

(9)

A direction under subsection (1) F7given by a regulator must be published in the way appearing to F8the regulator to be best calculated to bring it to the attention of the public.

(10)

F9A regulator who gives a direction under subsection (1) may charge a reasonable fee for providing a person with a copy of the direction.

(11)

F10A regulator who gives a direction under subsection (1) must, without delay, give the Treasury a copy of F11the direction.