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HMRC internal manual

Corporate Finance Manual

Debt cap: financial services groups: Lloyd’s

This guidance applies to worldwide group periods of account ending before or straddling 1 April 2017.

Members of Lloyd’s can be treated as undertaking qualifying activities

The setup at Lloyd’s is unusual in that it separates between different persons the two central and mutually dependent aspects of insurance business

  • supplying capital (undertaken by the Members, both private Names and large corporates) and
  • professional underwriting (undertaken by the syndicate managing agent).

Both aspects fall within the term ‘insurance activities’ mentioned at TIOPA10/S269 (1). Section 269 (6) is intended to deal with the fact that Lloyd’s as a Society, and its members ‘taken together’ are not strictly authorised to carry on insurance business by the FSA. Instead, the Society is authorised and given permission by statute - by Financial services and Markets Act 2000 section 315, and similarly its members, which are subject to prohibition only where the FSA so directs - FSMA00/S316.