Lloyd’s Conduct Risk Minimum Standards

Background

Lloyd's has released its new Conduct Risk Minimum Standards (the "Standards") with compliance potentially required of all Managing Agents by 1 January 2015. The Standards are the first documented rules and guidance on how Managing Agents must identify, assess, mitigate and oversee conduct risk.

The Standards are an important step for Lloyd's and London Market conduct regulation and supervision. With unprecedented focus on this market by the Financial Conduct Authority (FCA), it is important for firms to find a risk-based and proportionate solution to conduct risk. Firms are at varying stages of achieving this but in the absence of regulatory rules or guidance, the complexities and inconsistencies of the market have made this challenging.