Lloyd’s has welcomed changes that will ease the regulatory burden for the market’s managing agents. 

Prudential Regulation Authority (PRA) Director Insurance Shoib Khan said last week that Lloyd’s had improved its oversight of managing agents in recent years and the regulator had been considering how to enhance cooperation.

“For example, we are working with Lloyd’s and the [Financial Conduct Authority] on how we can make the process for authorising managing agents quicker, and we think we can coordinate more with Lloyd’s to ensure our oversight of managing agents is effective and efficient,” he said. “To this end, we have also modified our categorisation for managing agents.”  

The impact will typically be a lower level of supervisory interaction with the PRA for those managing agents. 

“These changes should reduce duplication and regulatory costs to support the competitiveness of the London Market without compromising prudential standards,” Mr Khan said. 

Lloyd’s CRO David Sansom says the market is “delighted” the PRA will be advising a number of managing agents of its intention to reduce their impact categorisation, which informs the level of PRA supervisory activity and intensity 

The PRA will continue to maintain its independent view and the categorisation will be subject to on-going review, but the changes should reduce regulatory costs to support the competitiveness of the Lloyd’s market, he says. 

“We will continue to work closely with managing agents and the LMA to maintain and, when necessary, adapt our new oversight framework.”