Regulatory Reform Citation and commencement 1 This Order may be cited as the Legislative Reform (Lloyd’s) Order 2008 and shall come into force on the day after the day on which it is made. Interpretation 2 In this Order “ the Act ” means Lloyd’s Act 1982 . The Council 3 1 Section 3 of the Act (the Council) shall be amended as follows. 2 In subsection (2)(c) omit the words “, whose appointments shall not take effect unless and until confirmed by the Governor for the time being of the Bank of England”. 3 In subsection (5), paragraphs (ii) and (iii) shall cease to have effect. Chairman and Deputy Chairmen of Lloyd’s 4 1 In section 4 of the Act (the Chairman and Deputy Chairmen of Lloyd’s) renumber the existing provision as subsection (1) of that section. 2 In subsection (1)— a insert after “annually elect” the words “by special resolution”, and b omit the word “working”. 3 After subsection (1) insert— 2 Subject to subsection (3) a person elected as the Chairman or Deputy Chairman of the Council may, but need not, be a member of the Society. 3 Where the person elected as Chairman is not a working member of the Society, at least one of the Deputy Chairmen must be elected from among the working members of the Council. The Committee 5 1 The Act shall be amended as follows. 2 In section 2(1) (interpretation), omit the definition of “the Committee”. 3 Section 5 (the Committee) shall cease to have effect. 4 Section 6 (powers of the Council and of the Committee) shall be amended as follows— a in the side-note, omit the words “and of the Committee”; b in subsection (5), paragraphs (c) to (e) shall cease to have effect; c subsections (6), (8) and (9) shall cease to have effect; d in subsection (7), omit the words “or of the Committee”; e in subsection (11), omit the words “or Committee” wherever they occur. 5 Section 7(3) (the Disciplinary Committee and the Appeal Tribunal) shall cease to have effect. 6 In section 13(1) (application of certain provisions of Companies Act 1948 c.38 ), omit the words “, the Committee”. 7 In section 15(2) (repeals and amendments) omit the words from “Provided that” to the end of the subsection. 8 Schedule 2 (purposes for which byelaws may be made) shall be amended as follows— a in the opening words of Schedule 2, omit “and of the Committee”; b in paragraph (6) omit the words “and of the Committee” on each occasion they occur; c in paragraph (7) omit sub-paragraph (b) and the preceding “and”; d in paragraph (8) omit the words “and the Chairman and Deputy Chairmen of the Committee”; e in paragraph (10)(a) omit the words “or of sub-committees of the Committee”; f in paragraph (10)(b) omit the words “or the Committee”; g in paragraph (11) for the words “the Committee or any other” substitute “any”. 6 1 In this article, “Committee” means the Committee constituted by section 5 of the Act (as in force immediately before the coming into force of this Order), and “Council” means the Council constituted by section 3 of the Act. 2 Any regulation made by the Committee in the exercise of powers delegated to it under section 6(6)(a)(i) of the Act (as in force immediately before the coming into force of this Order) shall be deemed to have been made by the Council in the exercise of its powers under the Act, and shall continue in full force and effect unless and until revoked by the Council. 3 Anything required or authorised to be done by the Committee under the provisions of any enactment, subordinate legislation, instrument, trust deed, or other document may after this Order comes into force be done by the Council. Powers of the Council 7 1 Section 6 of the Act shall be amended as follows. 2 In subsection (5)— a for the words “subsections (6) and (10)” substitute “subsection (10)”; b for paragraphs (a) and (b), substitute— a Committees, subcommittees or other bodies of persons (whose members need not be members of the Society), or b any person (whether or not a member of the Society). . 3 After subsection (5) insert— 5A A delegation under subsection (5) may be made— a to such an extent; and b on such conditions or subject to such restrictions, as the Council considers appropriate. 5B A delegation of the exercise of a power or function made under subsection (5) may authorise the person or body to whom it is delegated to make a further delegation of the exercise of that power or function. . 4 In subsection (7)— a for the words “subsections (5) and (6)” substitute “subsection (5)”; b insert after “employees” the words “or officers”. 5 In subsection (10)— a for the words “under this section” substitute “under subsection (5)”; b for “is revocable” substitute “may be amended or revoked”. The Disciplinary Committee and the Appeal Tribunal 8 1 Section 7 of the Act shall be amended as follows. 2 In subsection (1)(a)(i), for the words “provided that the majority of the members of any such Disciplinary Committee shall be members of the Society (who need not be members of the Council)” substitute “provided that the members of any such Disciplinary Committee shall include at least one person who falls within subsection (1A)”. 3 In subsection (1)(a)(ii), omit the words “subject to subsection (3) below,”. 4 Insert after subsection (1)— 1A A person falls within this subsection if he is— a a working member of the Society; b a director of a corporate member of the Society; c an officer or employee of an underwriting agent or Lloyd’s broker where that officer or employee has been approved by the Financial Services Authority under section 59 of the Financial Services and Markets Act 2000 ; d a person who has gone into retirement, but who immediately before retirement fell within paragraph (b) or (c) above. Insurance Business and Lloyd’s brokers 9 1 The Act shall be amended as follows. 2 In section 2(1), for the definition of “Lloyd’s broker” substitute— “Lloyd’s broker” means a partnership or body corporate permitted by the Council to describe itself as a Lloyd’s broker . 3 Section 8(3) (Insurance business) shall cease to have effect. 4 In section 8(4), for the words “(1) to (3)” substitute “(1) or (2)”. 5 In Schedule 2— a after paragraph (12) insert— 12A For regulating the grant and renewal of permission to a partnership or body corporate to describe itself as a Lloyd’s broker and regulating the manner and circumstances in which such permission may be withdrawn; ; b after paragraph (19) insert— 19A For regulating the conditions under which underwriting agents may accept and place business from or through intermediaries other than Lloyd’s brokers; 19B For regulating the manner and circumstances in which underwriting agents may transact insurance business otherwise than through an intermediary; . Divestment 10 1 Sections 10 (restrictions affecting Lloyd’s brokers), 11 (restrictions affecting managing agents) and 12 (interpretation of sections 10 and 11) of the Act shall cease to have effect. 2 In section 2(2), the words “(except sections 10, 11 and 12)” shall be omitted. Dave Watts Tony Cunningham Two of the Lords Commissioners of Her Majesty’s Treasury 18th November 2008