Paragraph 1 Syndicate's annual accounts

United Kingdom

(1)

A syndicate's annual accounts must be prepared in accordance with this paragraph.

(2)

Annual accounts must comprise—

(a)

a balance sheet as at the last day of the financial year; and

(b)

a profit and loss account.

(3)

The accounts must—

(a)

in the case of the balance sheet, give a true and fair view of the state of affairs of the syndicate as at the end of the financial year; and

(b)

in the case of the profit and loss account, give a true and fair view of the profit or loss of the syndicate for the financial year.

(4)

Subject to F1sub-paragraphs (4A) and (5) the accounts must comply with the provisions of Schedule 3 to the 2008 Regulations, other than the provisions (or parts of provisions) set out in sub-paragraph (7) as to—

(a)

the form and content of the balance sheet and profit and loss account; and

(b)

additional information to be provided by way of notes to the accounts.

F2(4A)

Paragraph 16 of Schedule 3 to the 2008 Regulations applies in relation to a syndicate as if it read “The syndicate is presumed to continue to write future business.”.

(5)

The information required by paragraph 90 of Schedule 3 to the 2008 Regulations must be given by the managing agent in relation to any transactions entered into by the managing agent on behalf of the syndicate and must in addition—

(a)

identify any related party who is an insurance or reinsurance intermediary within the meaning of Article 2 of Directive 2002/92/EC of the European Parliament and of the Council on insurance mediation; and

(b)

include particulars of the amount of any material transactions concluded otherwise than under normal market conditions with any related party within paragraph (a).

(6)

Where the managing agent has related parties within the meaning of sub-paragraph (5)(a), but there have been no transactions with them which require disclosure under paragraph 90 of Schedule 3 to the 2008 Regulations, the accounts must contain a statement to that effect, and identify any such related parties.

(7)

The provisions in Schedule 3 to the 2008 Regulations referred to in sub-paragraph (4) are—

(a)

paragraphs 11(2), 68, 71, 72, 82(2), 83; and

(b)

in paragraph 2(2) the words from “save that none of the following” to the end of that sub-paragraph.

(8)

The syndicate's annual accounts must also include a description of funds which members are required to hold at Lloyd's.

(9)

The description of funds referred to in sub-paragraph (8) need not include particulars of funds held by members of the syndicate.

Annotations

Textual amendments

F1: Words in Sch. 1 para. 1(4) substituted (with effect in accordance with reg. 1(7) of the amending S.I.) by The Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516), regs. 1(2), 15(14)(a)
F2: Sch. 1 para. 1(4A) inserted (with effect in accordance with reg. 1(7) of the amending S.I.) by The Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516), regs. 1(2), 15(14)(b)

Notes on the whole SI

Textual amendments

F1: Regulations revoked (14.12.2023 for the revocation of reg. 32) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2023/1382, reg. 2(c)(i)