Company: FRFXF
Filing Date: 2025-10-09
Form Type: F-10/A
Source: 0001104659-25-098335
Chunk: 92

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-10-09
Form: F-10/A
Chunk 92
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 in relation to setting the amount of capital required to be provided by each member to support its underwriting liabilities) under the direction of the PRA and the FCA. Members are not required to be authorized under FSMA, but must abide by the Lloyd’s rules, which means that the PRA and the FCA indirectly regulate members (given that Lloyd’s itself is a dual-regulated firm). Under sections 316 and 318 of FSMA, the PRA and the FCA can give directions to Lloyd’s or its members in order to advance one or more of their statutory objectives, for example by imposing particular rules on members. Lloyd’s has a memorandum of understanding with the PRA and the FCA to assist with cooperation in supervision and enforcement.

As regards to prudential requirements, the rules in the Solvency II UK Firms section of the PRA Rulebook apply to Lloyd’s and its managing agents as a whole, with some modifications (see “Prudential and Capital Requirements” below).

Syndicates are managed by managing agents who are authorized by the PRA and regulated by the PRA and the FCA.

Regulation of Lloyd’s Managing Agents

Part 4A Permissions

Under section 19 of FSMA, it is unlawful to carry on the regulated business of being a Lloyd’s managing agent in the United Kingdom without permission to do so from the PRA under Part 4A of FSMA (“

#### Part 4A Permission
”). A Lloyd’s managing agent will hold permissions for managing the underwriting capacity of a Lloyd’s syndicate as a managing agent at Lloyd’s, and usually also for insurance distribution activities such as dealing in investments as agent, arranging, advising on investments, and assisting in the administration and performance of contracts of insurance. Each of the above managing agents hold permissions for managing the underwriting capacity of a Lloyd’s syndicate and one or more of the insurance distribution activities.

At the point of authorization (on the granting of Part 4A Permissions) and at all times thereafter, managing agents must meet specified conditions which are set out in Schedule 6 of FSMA (“

#### Threshold Conditions
”).

The PRA and the FCA each have their own sets of Threshold Conditions and, as dual-regulated firms, the managing agents must comply with both. The Threshold Conditions relate to matters including the adequacy of the firm’s financial and other resources and whether a firm is a fit and proper person to conduct its regulated activities, having regard to all the circumstances (including whether