Lloyd's (Hansard, 21 July 1994)

§ The Prime Minister

The relevant paragraphs in "Questions of Procedure for Ministers" dealing with membership of Lloyd's have been revised to take account of recent developments in the way in which Lloyd's business is conducted, including the introduction of members agent pooling arrangements. The Secretary to the Cabinet circulated them to all Ministers on 5 July. The revised paragraphs, replacing paragraphs 118–123 of the latest version of "Questions of Procedure for Ministers", which I published on 19 May 1992, are as follows"Membership of Lloyd's 118. A Minister holding office as Prime Minister, Chancellor of the Exchequer or as President of the Board of Trade (Secretary of State for Trade and Industry), or a Minister holding office as a Minister in the Treasury who is responsible under the Chancellor of the Exchequer for taxation matters relating specifically to Lloyd's, or as a Minister in the Department of Trade and Industry responsible under the Secretary of State for Trade and Industry for insurance matters relating specifically to Lloyd's, should not become an underwriting member of Lloyd's. Such a Minister, if already a member of Lloyd's on appointment, should cease underwriting during tenure of that office. 119. Apart from those Ministers covered by the specific requirements of paragraph 118 above, any Minister who is an underwriting member of Lloyd's should not take an active part in the management of the affairs of syndicates of which he/she is a member, and should on appointment as a Minister withdraw from any such active participation in management. Ministers who are underwriting members of Lloyd's should arrange their syndicate participation solely through a Members Agent Pooling 552W Arrangement. This requirement will operate from the 1995 year of account, or from the first year of account after appointment for newly appointed Ministers, subject to time being available for the procedures for joining a MAPA. 120. No Minister who is a current underwriting member of Lloyd's should take part in any departmental or collective discussions or decisions affecting Lloyd's whether directly or indirectly (e.g., the Secretary of State for Transport in relation to questions concerning marine, aviation and transport insurance, the Secretary of State for Employment on questions concerning employers' liability insurance, Treasury Ministers on tax issues affecting Lloyd's). 121. Some Ministers have ceased underwriting but still have open syndicate commitments in respect of past membership. Such Ministers should take no part in those departmental or collective discussions or decisions affecting Lloyd's (whether directly or indirectly) if their continuing benefits or liabilities in respect of the period before cessation might thereby be affected, and might therefore make them vulnerable to reasonable suspicion of exerting or being in a position of undue influence. 122. A Law Officer who is an underwriting member of Lloyd's, or who still has open syndicate commitments in respect of past membership, should not tender advice on the formulation, application or enforcement of legislation relating to Lloyd's, or take part in any collective discussion or decision on any matters affecting Lloyd's and should, as far as is practicable, avoid taking enforcement decisions relating to Lloyd's. 123. A Minister in whom powers under legislation relating to Lloyd's are vested should not delegate the exercise of those powers to any other Minister who is an underwriting member of Lloyd's or who still has open syndicate commitments in respect of past underwriting. 123A. Every Minister is required, on appointment to a first Ministerial office, to obtain the Prime Minister's permission before continuing a connection with Lloyd's, however nominal. Any Minister wishing to establish or re-establish any such connection during his term of appointment should likewise obtain the Prime Minister's permission to do so. Before granting permission, the Prime Minister will need to be satisfied that the conditions indicated above will be met. 123B. In addition, the Secretary of the Cabinet is required to keep a list of Ministers who are members of Lloyd's. He will ask all Ministers on appointment for the first time to Ministerial office whether they are a member of Lloyd's and if so whether they propose to continue or suspend underwriting while they hold that office. He will also ask those Ministers who are members of Lloyd's and who are appointed to a subsequent Ministerial office whether they propose to continue or suspend underwriting while they hold that office. 123C. Where a Minister has a shareholding in an investment trust or any other entity which holds a corporate membership of Lloyd's, that shareholding should be treated on the same basis as any other by a Minister (see paras 109–17 of the May 1992 issue of QPM).