Lloyd's strict regime brings increase in disciplinary cases

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The Independent Online
A programme of "zero tolerance" against practitioners inside Lloyd's of London has led to a massive increase in formal disciplinary proceedings, the insurance market's internal regulators said yesterday.

But the Lloyd's Regulatory Board admitted the market still needed to re-establish its full credibility after devastating financial losses and was still 12 months away from best UK corporate practice.

More than 60 formal warnings were handed out to brokers, underwriters or agents while 19 practitioners were found guilty of misconduct.

A damaging reference in the Board's annual report says: "It is noticeable that many of the offences arose as a result of a lack of understanding of accepted business practice and the requirements of civil law."

Meanwhile, the Government is expected to announce plans within weeks that Lloyd's of London will be regulated in future by the new Financial Services Act due to be published this summer. "We assume there will be a ministerial announcement before the end of the month, said David Gittings, director of the Lloyd's regulatory division.