The Australian Prudential Regulation Authority has released new rules and arrangements applying to the authorisation and conduct of business of Lloyds underwriters in Australia. They came into effect on 1 July.

The main features of the new Lloyds regime include:

• new security arrangements, requiring Lloyds to maintain trust funds which are to be used to meet final judgments against Lloyds underwriters in the event that through its usual arrangements Lloyds does not pay such claims;
• an increase in the value of securities deposited with the Treasurer from $500,000 to $2 million. These deposits will be available to meet administrative costs in the event Lloyds underwriters cease to conduct insurance business in Australia; and
• an improvement in the supervisory and regulatory framework governing Lloyds. The rules enhance the regulatory protection for Lloyds Australian policyholders and accommodate Lloyds new trading structure.

Further information:

Gloria Peterson
Public Affairs Manager
Policy, Research and Consulting
(02) 9210 3385