The process for regulatory approval of Lloyd’s managing agents is set to become more efficient following an agreement between the Prudential Regulation Authority (PRA), Financial Conduct Authority (FCA), and the Society of Lloyd’s. The changes aim to reduce the time required for authorisation while maintaining high standards.
Under the new approach, both the PRA and FCA will continue their decision-making roles but will increasingly rely on assessments already conducted by Lloyd’s. This collaboration is expected to make decision-making more concurrent, thus shortening the process.
The initiative is part of a broader effort to enhance cooperation among the three organisations, aiming to improve efficiency and reduce oversight duplication in the Lloyd’s market. A successful pilot conducted in 2024 demonstrated that this new method could provide a quicker and clearer process for applicants, supporting growth in both the Lloyd’s and London Market.
Gareth Truran, Executive Director of Insurance Supervision at the PRA, said: “We’ve worked closely with the FCA and Lloyd’s to see how we can streamline our own processes and make as much use as possible of the review work that Lloyd’s undertakes.” He added that this approach aligns with their objectives for competition, competitiveness, and growth.
Sheree Howard, Executive Director of Authorisations at FCA, commented: “We are committed to being a smarter regulator, supporting growth and reducing unnecessary burdens on firms whilst maintaining our high standards.”
Caroline Sandeman-Allen, Chief of Market Oversight at Lloyd’s, emphasized: “The Lloyd’s market is the preeminent hub for global risk… It’s therefore hugely important that we remove barriers to entry wherever possible.”
A pilot exercise initiated in 2024 explored improvements in processes while maintaining existing standards. If applicants submit high-quality applications promptly, authorisation could be completed in about six months—much faster than the previous timeframe of 12-18 months. Further details will be communicated through standard channels.
Information from this article can be found here.
