In a market bulletin published on 14 February 2012, Lloyd’s announced a new Code of Practice and Guidance note in relation to the transfer of interests in Lloyd’s corporate members. Greater consideration is now being given to acquiring interests in corporate members as a means of acquiring underwriting capacity outside of the capacity auctions.

The Code sets out clear principles for members’ agents when dealing with the transfer of interests in corporate members, addressing issues such as engagement letters and conflicts of interest and including a clear obligation to advise clients of the need for prior written consent from Lloyd’s on a change of control. The Guidance note is aimed at individuals, who may not fully appreciate the issues involved, and strongly recommends that they seek the advice of a members’ agent or other suitably qualified professional adviser before proceeding.

See the Lloyd’s market bulletin, including the texts of the Code and Guidance note, here.