Accredited brokers able to enter the underwriting room at Lloyd’s and place risks. All applicants for accreditation must be members of the General Insurance Standards Council (GISC) but in 2005 will come under FSA regulation. They are required to carry professional indemnity insurance. They must also comply with the LMP 2001 Principles and interface with Lloyd’s business systems. The accreditation process has other high standard requirements. Lloyd’s brokers also place risks with insurance companies. See LOCAL BROKERS.

Fund Trust fund created into which Lloyd’s underwriters must pay all of their Canadian dollar premiums. The fund is held by the Royal Trust Corporation of Canada.

Lloyd’s Marine Intelligence Unit, provides weekly reports on marine, non-marine and aviation casualty information. Insurers, shipowners, cargo owners, shipping agents and others are able to find information on catastrophic events, labour disputes, seizures and arrests, natural disasters and other categories of unforeseen events that affect shipping, transport, trade, or insurance. The Unit analyses world casualties and their impact.

A fund available to meet claims when premium trust funds, Funds at Lloyd’s and members’ means have proved insufficient. All syndicates pay into this fund annually at a rate set by Lloyd’s centrally. The fund is backed by reinsurance that pays out if claims exceed £100 million in any one year up to £350 million. The central fund callable layer provides further funds (total value of £300 million) that Lloyd’s can call upon from syndicates’ premium trust funds. See LLOYD’S CHAIN OF SECURITY.

Requires that Lloyd’s agencies should be directed and managed by a sufficient number of persons who are fit and proper for their positions. There also has to be proper staffing, supervision and accountability and compliance. The Code specifically requires the involvement of non-executive directors of suitable calibre and enough in number to carry sufficient weight in the board’s decisions. See CORPORATE GOVERNANCE AT LLOYD’S.

Codes of conduct detailing how underwriting agents can best meet their responsibilities under Lloyd’s Core Principles. All codes originate as regulatory bulletins. The codes, supplementary to the Council’s byelaws, promote best practice. Compliance is strong evidence of the adequacy of the underwriting agent’s procedures. The various entities at Lloyd’s must also comply with FSA codes.

Set out in regulatory bulletin 025/96. A managing or members’ agent’s compliance oversight officer must concern himself that his firm meets the regulatory requirements in respect of: operating procedures; in-house rules; notification requirements; advisory services; regular monitoring/internal audit; complaints procedures; staff training; names’ compliance (members’ agents); compliance review.

Lloyd’s equivalent of the FSA’s Principles for Business. They have much common ground (e.g. integrity; skill, care and diligence; market conduct; conflicts of interest) without being identical. Differences are mainly in terms of focus. The FSA emphasises customers’ interests whereas Lloyd’s focuses on ‘conduct towards members’ reflecting differences between personal financial advice and the underwriting of a wide range of risks.

Companies with limited or unlimited liability admitted to membership at Lloyd’s. They engage managing agents but are not obliged to use a member’s agent. Corporate members originally participated across a spread of syndicates but regulatory changes enable them to dedicate their total capacity to a single syndicate. The corporate member and its managing agent may both be owned by an integrated Lloyd’s vehicle. Other corporate structures are spread vehicles and dedicated vehicles.

This policy varies from the standard fire policy in that fire caused by explosion is covered.