HL Deb 26 March 1996 vol 570 c129WA
Earl Alexander of Tunis

asked Her Majesty's Government:

What, in the light of the fact that the Department of Trade and Industry have since the early 1970s and the European Communities' First Non-Life Directive considered losses to be mutalised, they consider to be the legal position of Lloyd's Names who have for the last twenty years been recruited on the basis of being sole traders, and whether by implication the published statements recruiting investors to Lloyds were untrue in a material respect.

Baroness Miller of Hendon

As detailed in the reply given by my noble friend on 9 May 1995,Official Report, cols. WA 5–6, Names' losses are not mutalised, other than through the support that has been provided by Lloyd's Central Fund since the 1920s, which is recognised in the Insurance (Lloyd's) Regulations 1983, (implementing the first EC non-life insurance directive). Names' responsibilities vis-à-vis the central fund have been made clear through Lloyd's publication, Membership: The Issues, and a publication in these or substantially similar terms has been drawn to the attention of prospective members for many years.