Lloyds' new protectors begin review

Lloyds has gathered a task force of the great and good from inside and outside the insurance market to review regulatory procedures in the wake of its reconstruction and renewal programme.

One of two outsiders in the 13-strong regulatory review group is John Kennedy, a former senior partner at Allen & Overy, a director of the Securities and Investments Board, and one of the corporate capital members of Lloyds who have replaced many of the individual Names in providing capital.

Kennedy said the group had no planned agenda: “We start with a clean sheet,” adding that he would look at the way insurance was regulated in other markets. “It's preferable to work out a system, voluntarily, to protect investors rather than have one imposed.”

A Lloyds spokesman said the group was likely to introduce the compulsory registration of all 10,000 brokers who work for the 207 Lloyds-accredited brokerage companies. Registration of all 3,500 underwriters in Lloyds' underwriting agencies has already begun.

The group will report to the Lloyds Council in mid-1997.