LLOYD'S PROPOSES THIRD PARTY OVERSIGHT REGIME

Lloyd’s is to take a more "risk-based approach" to the oversight of coverholders and third-party administrators under new proposals. The corporation has begun a consultation on the proposals which it says will "modernise our current arrangements and support reduced compliance costs". The proposed changes to third-party oversight include a risk-based approach to applications, bringing claims TPAs into the scope of Lloyd’s oversight and the removal of the prohibition of sub-delegation. Lloyd’s is also proposing the introduction of a category of firm that can have delegated authority without first obtaining prior Lloyd’s approval. The consultation ends on April 15.