INTERMEDIARIES BYELAW______________________________________________
PurposeThe purpose of this Byelaw is to –
1.
2.
3.
4.
5.
6.
7.

permit the acceptance of business at Lloyd’s through coverholders;specify to whom a managing agent may delegate its authority to underwrite contracts
of insurance and issue insurance documentation;state which type of coverholder must be approved by the Franchise Board;
provide for the registration of all approved coverholders;provide for the registration of certain binding authorities; andprovide for the Franchise Board to prescribe conditions and requirements relating toinsurance documentation issued by coverholders; andprovide for the registration of Lloyd’s brokers.

The Byelaw also revokes –1.
2.

The Delegated Underwriting Byelaw (No. 1 of 2004); andThe Lloyd’s Broker Byelaw (No. 7 of 2004); andAmendments
This byelaw was amended byIntermediaries (Service Company Amendment) Byelaw (No. 5 of 2008)
The Legislative Reform (Lloyd’s) Order (Market Provisions) Byelaw (No. 1 of 2009)
Intermediaries (Claims Determination) Amendment Byelaw (No. 1 of 2012)
Intermediaries (Restricted Coverholder Revocation) Amendment Byelaw (No. 1 of 2014)
Words and terms shown in italics have the meaning set out in the Definitions Byelaw.
This Byelaw was made by the Council on 28 March 2007 in exercise of its powers under
section 6(2) and 8(3) of, and paragraphs (4), (12), (14), (19), (21), (24), (37) and (41) of
Schedule 2 to, Lloyd’s Act 1982 and may be referred to as the Intermediaries Byelaw (No. 3 of2007).
The headings and these notes are for guidance only and do not form part of the Intermediaries
Byelaw.

1

Contents______________________________________

Section 1

Delegated Underwriting

Part A

Delegation of authority
Delegation of authority to enter into contracts of insurance
Delegation of authority to issue insurance documentation

Part B

Registers of coverholders and registered binding authorities

Part CApproved coverholders
Applications for approval
Approval
Directions, conditions and requirements
Review of approval
Revocation of approval[Part D

Deleted by the Intermediaries (Restricted Coverholder Revocation) Amendment Byelaw(No. 1 of 2014).]

Part E

Binding authorities
Requirements relating to binding authorities
Registration of binding authorities

Part F

Requirements for insurance documentation

Part G

Claims and third party administrators

Part H

Suspension

2Section 2

Lloyd’s Brokers

Part I

Registration
Registration
Criteria for registration

Part J

Additional requirements for Lloyd’s brokers
Terms of business agreements
Notification to Lloyd’sPart K

Review of registration
Power to conduct reviews

Part L

Removal from the register
Removal from the register
Postponed removal
Permission to broke insurance business after removal

Section 3

Miscellaneous and transitional arrangements

Part M

Miscellaneous and transitional arrangements
Acceptance of business
The Franchise Board
Managing agent’s obligations (coverholder arrangements)
Publication
Fees
Divestment
Prohibition on unregistered persons broking insurance business at Lloyd’s
Disclosure of information
Revocations and consequential amendments
Transitional and miscellaneous arrangements
Supplementary directions, conditions and requirements
Commencement

3Section 1

Delegated Underwriting

Part A – Delegation of authority

Delegation of authority to enter into contracts of insurance
1.

A managing agent shall not delegate its authority to enter into contracts of insurance
to be underwritten by the members of a syndicate managed by it to any person otherthan –
(a)

(b)
(c)
(d)

2.

to a director or employee of the managing agent or, with the consent of theFranchise Board, to any other individual engaged to provide services to the
managing agent;
to another managing agent or authorised insurance company in accordancewith the terms of a line slip;
to another managing agent in accordance with the terms of a registeredbinding authority;
to an approved coverholder in accordance with the terms of a registeredbinding authority;[(e)deleted by the Intermediaries (Restricted Coverholder Revocation) Amendment Byelaw (No. 1
of 2014).](f)

to the Society, or a representative or agent of the Society; or(g)in accordance with any other of the requirements of the Council.

Any person, other than the Society or a managing agent, with authority to enter into
contracts of insurance to be underwritten by members of a syndicate shall not subdelegate that authority other than to a director, partner or employee of that person inaccordance with the terms of the binding authority or line slip in question, save that aservice company coverholder may also sub-delegate its authority under its service
company agreement to another approved coverholder in accordance with the terms ofa binding authority.

4Delegation of authority to issue insurance documentation 1
3.

A managing agent shall not delegate its authority to issue documents evidencing
contracts of insurance underwritten by the members of a syndicate managed by it toany person other than to –
(a)
(b)

(c)
(d)
(e)
[(f)

deleted by the Intermediaries (Restricted Coverholder Revocation) Amendment Byelaw (No. 1
of 2014).](g)

the Society, including for the purpose of issuing or otherwise making available
marine insurance certificates in accordance with the Marine Insurance
Certificates Byelaw (No. 3 of 2002), or a representative or agent of theSociety; or
to such other persons as the Franchise Board may permit.

(h)4.

the LPSO;
a director or employee of the managing agent or, with the consent of theFranchise Board, to any other individual engaged to provide services to the
managing agent;
another managing agent or an authorised insurance company in accordancewith the terms of a line slip;
another managing agent in accordance with the terms of a registered binding
authority;
an approved coverholder in accordance with the terms of a registered binding
authority or a restricted binding authority;

Any person, other than the Society, LPSO or a managing agent, with authority to issue
documents evidencing contracts of insurance underwritten on behalf of the membersof a syndicate shall not sub-delegate that authority other than to a director, partner or
employee of that person in accordance with the terms of the binding authority or line
slip in question, save that a service company coverholder may also sub-delegate its
authority under its service company agreement to another approved coverholder inaccordance with the terms of a binding authority.

1

Paragraph 3 of the Intermediaries Byelaw does not prohibit:(1) the use of electronic systems or repositories for the formation, recording and storage of insurance contracts; or(2) brokers from producing evidence of cover from such systems or repositories as this in itself does not constitutedelegation of authority by the managing agent. In that context, brokers may produce insurer authorised evidenceof cover held on the system for onward transmission to the insured provided that the reproduction is a complete
and accurate reproduction of the insurer authorised evidence of cover.
This footnote has been included because Lloyd’s has received enquiries seeking clarification of this paragraph in the context
of electronic systems and repositories. This footnote does not form a part of the byelaw. Lloyd’s August 2008.

5

Part B – Registers of coverholders and registered binding authorities

5.

The Franchise Board shall establish and maintain registers of –(a)(b)

approved coverholders; andregistered binding authorities.

6.

The registers shall be in such form and contain such information as the Franchise
Board may prescribe.

7.

The Franchise Board may prescribe which persons or categories or classes of person
may inspect all or any part of each register referred to in paragraph 5.

6

Part C - Approved coverholders

Applications for approval
8.

Any company or partnership that wishes to be approved as an approved coverholder(an “applicant”) may apply to the Franchise Board. Applications shall be made inaccordance with such procedures and shall be accompanied by such documents andinformation as the Franchise Board may from time to time prescribe.

9.

The Franchise Board may require an applicant, which is not a Lloyd’s broker, to besponsored by a Lloyd’s broker or a managing agent (the “sponsor”).

10.

At any time after receiving an application, the Franchise Board may, in connection
with the consideration of the application, require –
(a)
(b)
(c)

the applicant;any sponsor; or
any managing agent which proposes to enter into a binding authority with theapplicant,or any of the directors, partners and employees of any such person to –
(i)
(ii)
(iii)
(iv)
(v)

(vi)

provide information, documents, books, records and other materials;
answer questions;give undertakings or make declarations to the Franchise Board;
attend before the Franchise Board or any representative or agent of theSociety;permit the Franchise Board or any representative or agent of the Society toattend at the applicant’s business premises to inspect, review or assess theapplicant’s business operations, books and records and to pay or contribute to
the costs of that inspection, review or assessment;
provide funds or other security (including, but not limited to letters of credit,
charges or guarantees) for the settlement and payment of insurance
transactions incurred by it.

7

Approval
11.

The Franchise Board may consider applications for approval as an approved
coverholder and grant or refuse any such approval. Upon granting any such approval
the name of the applicant shall be entered into the register of approved coverholders.

12.

The Franchise Board shall not approve an applicant as an approved coverholder
unless the applicant has demonstrated to the Franchise Board that it is suitable to bean approved coverholder.

13.

In deciding whether an applicant is suitable to be approved as an approved
coverholder the Franchise Board shall have regard to such criteria as it may fromtime to time prescribe for all or any class or category of applicants.

14.

A person shall not hold itself out as being an approved coverholder unless its nameappears in the register of approved coverholders.

15.

The approval of a person as an approved coverholder may be –
(a)

(b)
(c)
(d)

subject to that person entering into a binding authority to be registered inaccordance with this Byelaw within such period as the Franchise Board may
specify;subject to the provision of undertakings or declarations from such persons as
the Franchise Board may require;
for a specific or an indefinite period;
subject to that person being classified as a service company coverholder.

Directions, conditions and requirements
16.

The Franchise Board may at any time give such directions to or impose suchconditions or requirements on an approved coverholder (or any class or group
thereof) as it thinks necessary or appropriate. A direction, condition or requirement
given or imposed under this paragraph may include a direction, condition or
requirement for the purposes of ensuring that the approved coverholder –
(a)
(b)

(c)

is or will continue to be suitable to be an approved coverholder;will only act in that capacity in accordance with a binding authority which has
such parties, or which was arranged or broked by such person or persons, as
the Franchise Board may specify;
will only act in that capacity in respect of certain classes or categories of
insurance business as specified by the Franchise Board;

8

(d)

may only determine the premium to be charged in respect of each contract of
insurance to be entered into under a binding authority in accordance with such
restrictions or limitations as the Franchise Board may specify.

Review of approval
17.

The Franchise Board may at any time conduct a review of an approved coverholder’sapproval under this Byelaw for the purpose of determining –
(a)
(b)

18.

whether the approved coverholder continues to be suitable to be an approved
coverholder;
whether there are or may be any ground for exercising any power of theFranchise Board.

In connection with any review conducted by the Franchise Board under paragraph 17,
the Franchise Board may require the approved coverholder, any managing agent
which is or has been a party to a binding authority with the approved coverholder andany Lloyd’s broker which arranged, broked or is a party to any such binding authority
and any of their directors, partners or employees to –
(a)
(b)
(c)
(d)

(e)

provide information, documents, books, records and other materials;
answer questions;attend before the Franchise Board or any representative or agent of theSociety;permit the Franchise Board or any representative or agent of the Society toattend at the approved coverholder’s business premises to inspect, review orassess the approved coverholder’s business operations, books and records andto pay or contribute to the costs of that inspection, review or assessment;
make declarations to the Franchise Board.

Revocation of approval
19.

The Franchise Board may at any time revoke the approval of an approved
coverholder and remove its name from the register of approved coverholders if theFranchise Board considers that –(a)(b)

the approved coverholder is not suitable to be an approved coverholder;
the approved coverholder has failed to or has ceased to comply with any
direction, condition or requirement given to or imposed upon it underparagraph 16;

9

(c)
(d)

(e)

20.

the approved coverholder has failed to or has ceased to comply with the termsof any undertaking or declaration that it has given to the Franchise Board;
the approved coverholder has not been party to a registered binding authority
for a period of 3 months, or such longer period as the Franchise Board may
permit, since the expiry of its authority to enter into contracts of insurance onbehalf of the members of a syndicate under the last registered binding
authority to which it was party; or
it is necessary or desirable in order to protect the name, reputation or standingof the Society and of its members or their authorisation to conduct insurance
business.

Where the Franchise Board considers that there are grounds for revoking the approvalof an approved coverholder the Franchise Board may if it considers that there is goodreason to do so –
(a)

(b)

postpone that revocation for such period or periods as the Franchise Board
may specify from time to time or until the Franchise Board shall otherwise
determine; andin connection with such postponement, at any time give such directions or
impose such requirements as it may think fit including directions or
requirements for the purpose of ensuring that –
(i)

(ii)

the approved coverholder does not or does not continue to enter into or
purport to enter into any further contracts of insurance on behalf ofmembers of a syndicate; andany contracts of insurance entered into by the approved coverholder onbehalf of members of a syndicate in any capacity are properly
administered.

10[Part D – Restricted coverholders
Deleted by the Intermediaries (Restricted Coverholder Revocation) Amendment Byelaw (No. 1 of2014).]

11

Part E - Binding authorities and line slips

Requirements relating to binding authorities and line slips
30.

The Franchise Board may from time to time prescribe conditions and requirementswith which all binding authorities or line slips or any class or category of binding
authority or line slip must comply including conditions and requirements relating to
information, provisions and terms to be included in a binding authority or line slip.

31.

A coverholder or a managing agent shall not enter into or purport to enter into acontract of insurance under a binding authority or a line slip unless (a)(b)

each of the parties to the binding authority or line slip have agreed to its terms
and conditions; andthe binding authority or line slip complies with the conditions andrequirements prescribed by the Franchise Board in accordance with paragraph
30.

Registration of binding authorities
32.

An approved coverholder shall not enter into or purport to enter into a contract of
insurance under a binding authority until that binding authority has been registered inaccordance with the requirements and procedures prescribed by the Franchise Board.

33.

The Franchise Board may from time to time prescribe –
(a)
(b)

34.

which classes and categories of persons may register a binding authority; andprescribe requirements and procedures which must be complied with in orderto register a binding authority.

The person who registers a registered binding authority shall ensure that the
information contained in the register relating to that binding authority is kept up-todate.

12

Part F - Requirements for insurance documentation

35.

The Franchise Board may from time to time prescribe such conditions andrequirements regarding insurance documentation issued under a binding authority or aline slip which may include conditions and requirements relating to –
(a)
(b)
(c)

(d)

the content, form and style of the insurance documentation;
service standards for the issuance and distribution of the insurance
documentation;
arrangements to ensure, where a contract of insurance has been entered into
under a binding authority, that a policyholder can verify the authority of acoverholder to enter into contracts of insurance underwritten by members of a
syndicate and the authenticity of the insurance documentation issued by it; andarrangements for the proper control of the issuance and distribution of theinsurance documentation.

13

Part G – Claims and third party administrators

Claims36A.

In respect of contracts of insurance entered into under a binding authority, amanaging agent shall not delegate its authority to determine claims arising under acontract of insurance entered into on behalf of the members of a syndicate managed
by that managing agent to any person other than to –
(a)
(b)

(c)
(d)
(e)
(f)
(g)
(h)

(i)
(j)

36B

the scheme service provider as defined under the terms of the Lloyd’s Claims
Scheme;a director or employee of the managing agent or, with the consent of theFranchise Board, to any other individual engaged to provide services to the
managing agent;
another managing agent or to a substitute agent;
an approved run-off company;a coverholder where the contract of insurance has been entered into by thatcoverholder in accordance with the terms of a binding authority;
a Lloyd’s claims settling agent;a lawyer or firm of lawyers qualified to practice law in accordance with thelaws and regulations where they are located;a third party administrator where the managing agent is satisfied that the third
party administrator is suitable having regard to such criteria that theFranchise Board may from time to time prescribe;
the Society or a representative or agent of the Society; or
to such other person or classes or category of person as the Franchise Board
may permit either generally or in respect of different types, classes or
categories of contracts of insurance.

In respect of contracts of insurance other than those entered into under a binding
authority, a managing agent shall not delegate its authority to determine claims
arising under a contract of insurance entered into on behalf of the members of a
syndicate managed by that managing agent other than to a person that the managing
agent is satisfied is a competent or appropriate person taking into account suchguidelines, standards or requirements that the Franchise Board may from time to timeprescribe.

14

36C

For the purpose of this Part G of this Byelaw, the expression “to determine claims”
shall mean all activities relating to the acceptance or denial of a claim (in whole or inpart), the agreement of any amount payable in respect of a claim or the final
resolution of any claim, complaint or other matter ancillary to that claim (whether byagreement or by dispute resolution).

Third party administrators
Notification
36D.

A managing agent shall notify the Franchise Board –(a)(b)

where it intends to delegate its authority to determine claims pursuant toparagraph 36A(h) of this Byelaw to a third party administrator; andforthwith when the managing agent terminates its delegation of authority todetermine claims to that third party administrator,and notifications shall be made in accordance with such process or system as theFranchise Board operates for that purpose.
Obligation to inform if no longer fit and proper
36E.

A managing agent shall immediately notify the Franchise Board (a)(b)

if it has reason to believe that any third party administrator may not be a fit
and proper person; orof any other matters relating to the third party administrator which the
managing agent believes may adversely impact the name, reputation or
standing of the Society and of its members or their authorisation to conduct
insurance business.

Information
36F.

The Franchise Board may at any time require a managing agent, which has delegatedits authority to determine claims to a third party administrator pursuant to paragraph
36A(h) of this Byelaw, to –
(i)
(ii)

provide information, documents, books, records and other materials;
answer questions;15

(iii)

give undertakings or make declarations to the Franchise Board,in respect of that third party administrator.
Directions and requirements
36G

The Franchise Board may at any time give such directions to or impose suchconditions or requirements on a managing agent in respect of any third party
administrator (or any class of group thereof) as it thinks necessary or appropriate. A
direction, condition or requirement given or imposed under this paragraph may
include a direction, condition or requirement –(a)for the purposes of ensuring that a third party administrator (i)
(ii)

(b)

is or will continue to be fit and proper to be a third party
administrator;
will only act in that capacity in respect of certain classes or categories
of insurance business as specified by the Franchise Board,that the managing agent cease delegating its authority to determine claims to athird party administrator.

Claims Delegation Agreement
36H.

The Franchise Board may from time to time prescribe conditions and requirementswith which all agreements delegating a managing agent’s authority to determine
claims arising under a contract of insurance entered into under a binding authority to athird party administrator or any type, class or category of agreement must comply.
This may include conditions and requirements relating to information, provisions andterms to be included in that agreement.

16Part H - Suspension

37.

The Franchise Board may make a direction or order of suspension in respect of any
coverholder on such terms and subject to such requirements as it may specify when in
its opinion such a direction or order appears to be necessary or desirable in theinterests of the Society, its members or policyholders.

38.

The terms of a direction or order made by the Franchise Board under paragraph 37
may include requirements that the coverholder –
(a)
(b)
(c)

ceases to enter into contracts of insurance on behalf of members of a syndicate
in respect of any or all binding authorities;
ceases to administer or run-off any contract of insurance entered into by it on
behalf of members of a syndicate;ceases to issue documents evidencing contracts of insurance entered into by iton behalf of members of a syndicate.

17Section 2

Lloyd’s Brokers

Part I - Registration
Registration
39.

The registration of persons as Lloyd’s brokers and the renewal, review andwithdrawal of such registration shall be under the control of the Franchise Board.

40.

The Franchise Board shall maintain a register of Lloyd’s brokers which shall be insuch form and contain such information as the Franchise Board may from time totime prescribe.

41.

Any person who wishes to be registered or re-registered as a Lloyd’s broker (an“applicant”) may apply to the Franchise Board for its name to be entered or reentered in the register.

42.

Applications shall be made in accordance with such procedures and shall beaccompanied by such documents and information as the Franchise Board may fromtime to time prescribe.

43.

Subject to this Byelaw, the Franchise Board shall have power to –
(a)
(b)

(c)
(d)

44.

consider any application for entry in the register of Lloyd’s brokers and any
application for re-registration;on the grant of any such application, cause the name of the applicant (and all
information which the Franchise Board may determine in accordance withparagraph 40) to be entered in the register of Lloyd’s brokers;
review the registration of any Lloyd’s broker in accordance with part K of this
Byelaw; andremove the name of any Lloyd’s broker from the register in accordance withpart L of this Byelaw.

The registration of a Lloyd’s broker shall be either for a specific period or for anindefinite period.
Criteria for registration

45.

An applicant shall not be registered as a Lloyd’s broker unless the applicant has
demonstrated to the Franchise Board’s satisfaction that it is eligible to be a Lloyd’s
broker.

18

46.

In deciding whether an applicant is eligible to be registered as a Lloyd’s broker theFranchise Board may have regard to such criteria as it may from time to timeprescribe.

19Part J – Additional requirements for Lloyd’s Brokers
Terms of business agreements[47.

deleted by The Legislative Reform (Lloyd’s) Order (Market Provisions) Byelaw (No.1 of 2009).]

Notification to Lloyd’s
48.

While a Lloyd’s broker remains on the register of Lloyd’s brokers, it shall ensure thatit remains eligible and shall immediately inform the Franchise Board in writing if it
knows or believes that it is no longer eligible.

20

Part K – Review of registration

Power to conduct reviews
49.

The Franchise Board may at any time order a review of a Lloyd’s broker’s
registration under this Byelaw for the purpose of determining –(a)(b)

whether the Lloyd’s broker in question continues to be eligible to be registeredas a Lloyd’s broker; orwhether there are or may be any grounds for exercising any power of theFranchise Board.

50.

Any review ordered pursuant to paragraph 49 of this Byelaw may be conducted bysuch person or persons as may from time to time be nominated by the Franchise
Board.

51.

A person conducting a review of a Lloyd’s broker may require that it provide such
documents and information as that person may reasonably require for the purposes of
the review.

21Part L – Removal from the register

Removal from the register[52.

deleted by The Legislative Reform (Lloyd’s) Order (Market Provisions) Byelaw (No.1 of 2009).]53.

The Franchise Board may at any time remove the name of a registered Lloyd’s broker
from the register if that Lloyd’s broker –
(a)
(b)
(c)

ceases in the opinion of the Franchise Board to be eligible to be a Lloyd’s
broker;registration has expired;
so requests; orwhere the Franchise Board considers that it is necessary or desirable in order toprotect the name, reputation or standing of the Society and of its members or theirauthorisation to conduct insurance business.

Postponed removal
54.

Where the Franchise Board considers that there are grounds for removing the nameof a Lloyd’s broker from the register under any of the preceding provisions of thisparagraph (other than paragraph 52) the Franchise Board may, if it considers that
there is good reason to do so –
(a)

(b)

postpone the removal of the name of the Lloyd’s broker from the register forsuch period as the Franchise Board may specify from time to time or until theFranchise Board shall otherwise determine;in connection with such postponement at any time and from time to time givesuch directions or impose such requirements as it may think fit, including
without limitation –
(i)

(ii)

a direction or requirement that the Lloyd’s broker shall not carry on
any business or activity, or business or activity of a specified class ordescription, at Lloyd’s; anda direction or requirement that the Lloyd’s broker shall not hold itself
out as a Lloyd’s broker.

22Permission to broke insurance business after removal
55.

Notwithstanding that the name of a Lloyd’s broker has been removed from theregister, the Franchise Board may, if it considers that there is good reason to do so,
and on such conditions and for such period as it thinks fit, permit –(a)(b)

that former Lloyd’s broker to continue to broke insurance business at Lloyd’s;or
any other person to broke insurance business at Lloyd’s on behalf of thatformer Lloyd’s broker

for the purposes only of discharging the continuing functions of that former Lloyd’s
broker in connection with insurance contracts, binding authorities and line slips
effected by it or for which it had undertaken responsibility before the date of such
removal from the register of Lloyd’s brokers.

23

Section 3

Miscellaneous and transitional provisions

Part M – Miscellaneous and transitional provisions

Acceptance of business[56.

deleted by The Legislative Reform (Lloyd’s) Order (Market Provisions) Byelaw (No.1 of 2009).]

The Franchise Board
57.

All references in this Byelaw to the Franchise Board shall be deemed to also bereferences to the Council. The Franchise Board may exercise all of the powers,
discretions and functions set out in this Byelaw as the agent of the Council.

Managing agent’s obligations (coverholder arrangements)
58.

A managing agent shall not authorise, permit or cause a coverholder to act incontravention of any of the requirements of the Council.

59.

A managing agent shall immediately notify the Franchise Board in writing if it
knows or believes or has reason to believe that any coverholder is acting or has acted
in contravention of any provision of this Byelaw or of any of the requirements of theCouncil.

60.

A managing agent shall take all reasonable steps to satisfy itself that an approved
coverholder remains suitable to be an approved coverholder in accordance with this
Byelaw and any requirements as prescribed by the Franchise Board prior to the
managing agent delegating its authority to enter into a contract or contracts of
insurance to that approved coverholder.

61.

A managing agent shall immediately notify the Franchise Board in writing in theevent that it knows or believes or has reason to believe that any of the events atparagraph 19 (a) to (e) or paragraph 28 (a), (c) or (d) has occurred or is likely tooccur.

62.

Nothing in this Byelaw shall permit a managing agent to delegate its authority toenter into a contract of insurance on behalf of a member or to delegate its authority toissue documents evidencing contracts of insurance underwritten on behalf of a24

member where such delegation would be contrary to the laws, regulations or
requirements of the country in which the business will be transacted.

Publication
63.

The Franchise Board may, where appropriate, publish any decision made under this
Byelaw in such terms as it sees fit.

Fees
64.

Every applicant for registration as a Lloyd’s Broker shall pay to the Society such fees
as the Franchise Board may from time to time require.

65.

Every registered Lloyd’s broker shall pay to the Society such fees as the Council mayfrom time to time require.

Divestment[66.

deleted by The Legislative Reform (Lloyd’s) Order (Market Provisions) Byelaw (No.1 of 2009).]

Prohibition on unregistered persons broking insurance business at Lloyd’s
67.

No person may broke insurance business at Lloyd’s unless registered as a registered
Lloyd’s broker under this Byelaw or a person referred to at paragraph 27 of theUnderwriting Byelaw as a person from or through whom a managing agent may
accept business on behalf of the members of a syndicate which it manages.

Disclosure of information
68.

The Franchise Board may where necessary or appropriate require a registered Lloyd’s
broker to give its consent to the Financial Services Authority or any other insuranceintermediary regulator to disclose information which relates to that registered Lloyd’s
broker to the Franchise Board.

25

Revocations and consequential amendments
69.

The following Byelaws are revoked –(a)(b)

The Lloyd’s Broker Byelaw (No. 7 of 2004); andThe Delegated Underwriting Byelaw (No. 1 of 2004).

70.

Every reference in the requirements of the Council to the Byelaws referred to atparagraph 69 shall, save where the context otherwise requires, be deemed to be areference to this Byelaw or, in the case of a definition, to the Definitions Byelaw.

71.

The Definitions Byelaw (No. 7 of 2005) is amended by deleting the words “Lloyd’s
Brokers Byelaw (No.7 of 2004)” and “Delegated Underwriting Byelaw (No.1 of
2004) and substituting therefor a reference to this Byelaw.

Transitional and miscellaneous arrangements
72.

The Franchise Board shall on 2 April 2007 enter in the register of approved
coverholders, maintained in accordance with this Byelaw, the name of any person
who on 1 April 2007 was an approved coverholder in accordance with the Delegated
Underwriting Byelaw (No. 4 of 2004).

73.

The Franchise Board shall on 2 April 2007 enter in the register of restricted
coverholders, maintained in accordance with this Byelaw, the name of any person
who on 1 April 2007 was a restricted coverholder in accordance with the Delegated
Underwriting Byelaw (No. 1 of 2004).

74.

Every coverholder which as at 1 April 2007 was subject to a direction, condition or
requirement, imposed under paragraph 16 of the Delegated Underwriting Byelaw (No.
1 of 1994) shall from 2 April 2007 be deemed to be subject to a corresponding
direction, condition or requirement imposed under paragraph 16 of this Byelaw.

75.

Every review of a coverholder’s approval which as at 1 April 2007 was being
conducted pursuant to the terms of paragraph 17 of the Delegated Underwriting
Byelaw (No. 1 of 1994) shall from 2 April 2007 be deemed to be a review conductedby the Franchise Board in accordance with paragraph 17 of this Byelaw.

76.

The Franchise Board shall on 2 April 2007 enter in the register of Lloyd’s brokers,
maintained in accordance with this Byelaw, the name of any person who on 1 April
2007 was an accredited Lloyd’s broker or a provisionally accredited Lloyd’s broker inaccordance with the Lloyd’s Brokers Byelaw (No. 7 of 2004).

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Supplementary directions, conditions and requirements

77.

The Franchise Board may at any time give such directions or impose such conditions
or requirements as may be necessary in order to clarify or supplement the matter set
out in this Byelaw or otherwise to give effect to orderly transitional arrangements.

Commencement
78.

This Byelaw shall come into force on 2 April 2007.

Notes
These notes, the note setting out the purpose of this Byelaw and the part and paragraphheadings are for guidance only and do not form part of the Byelaw.

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