Part

LLD Lloyd's

Chapter

Capacity transfer market

Printed on: 12/05/2025

Rulebook at: 01/04/2005

LLD 4

Capacity transfer market

LLD 4.1

Application and purpose

  • 01/12/2004

Application

LLD 4.1.1

handbook-rule
This chapter applies to the Society.
  • 01/12/2004

LLD 4.1.2

handbook-rule
A contravention of the rules in this chapter does not give rise to a right of action by a private person under section 150 of the Act (Actions for damages) and each of those rules is specified under section 150(2) of the Act as a provision giving rise to no such right of action.
  • 01/12/2004

Purpose

LLD 4.1.3

handbook-guidance
The rules and guidance in this chapter are intended to promote confidence in the market at Lloyd's, and to protect certain consumers of services provided by the Society in carrying on, or in connection with or for the purposes of, its regulated activities. They do this by ensuring that the Society appropriately and effectively regulates the capacity transfer market so that it operates in a fair and transparent manner.
  • 01/12/2004

LLD 4.2

Requirement to make byelaws governing conduct in the capacity transfer market

  • 01/12/2004

Requirement

LLD 4.2.1

handbook-rule
The Society must make appropriate byelaws governing conduct in the capacity transfer market.
  • 01/12/2004

Standards expected

LLD 4.2.2

handbook-guidance

The byelaws referred to in LLD 4.2.1 R should:

  1. (1) ensure that adequate and effective arrangements are in place to enable members and persons applying to be admitted as members to enter into transactions to transfer syndicate capacity and settle these transactions in a timely manner;
  2. (2) give clear and comprehensive guidance about the dissemination of information that is, or may be, relevant to the price of syndicate capacity and the transparency of the capacity transfer market; and
  3. (3) prohibit unfair and abusive practices (including market manipulation), the misuse of information not generally available, and the dissemination of false or misleading information.
  • 01/12/2004

LLD 4.2.3

handbook-guidance
The Society should have adequate and effective arrangements to:
(1) record and monitor transactions in the capacity transfer market, and maintain adequate audit trails; and
(2) suspend or annul transactions where appropriate.
  • 01/12/2004

LLD 4.2.4

handbook-guidance
The Society should have adequate and effective arrangements to monitor and enforce compliance with the byelaws referred to in LLD 4.2.1 R.
  • 01/12/2004

LLD 4.2.5

handbook-guidance
The Society should regularly review the byelaws referred to in LLD 4.2.1R, taking account of the standards of conduct required in other UK financial markets.
  • 01/12/2004

LLD 4.2.6

handbook-guidance
The Society's arrangements for reviewing and amending the byelaws referred to in LLD 4.2.1 R should be timely, effective and impartial and should take into account the guidance about conflicts of interest in LLD 1.3.
  • 01/12/2004

LLD 4.2.7

handbook-guidance
The Society should consult members and underwriting agents before it finalises material changes in the byelaws referred to in LLD 4.2.1 R, and should have timely and effective arrangements for notifying them of changes in these byelaws.
  • 01/12/2004

Changes in byelaws

LLD 4.2.8

handbook-guidance
The Society should give the FSA adequate notice of all changes it proposes to make in its byelaws governing conduct in the capacity transfer market.
  • 01/12/2004

LLD 4.2.9

handbook-guidance
The FSA will take account of the standards of conduct required in other UK financial markets when it reviews proposed changes in the Society's byelaws governing the capacity transfer market.
  • 01/12/2004

LLD 4.3

Information about the capacity transfer market

  • 01/12/2004

LLD 4.3.1

handbook-rule
The Society must give the FSA a report as at the end of each calendar quarter in which any capacity is transferred.
  • 01/12/2004

LLD 4.3.2

handbook-rule
The report referred to in LLD 4.3.1 R must reach the FSA within one month of the end of the relevant calendar quarter and must include information on:
(1) the total capacity in syndicates transferred during the quarter, analysed by syndicate and method of transfer;
(2) the number, and nature, of all investigations by the Society into conduct in the capacity transfer market undertaken or continued during the quarter; and
(3) the number, and nature, of all complaints received during the quarter about the operation of the capacity transfer market.
  • 01/12/2004

LLD 4.3.3

handbook-guidance
The report referred to in LLD 4.3.1 R must be submitted in writing in accordance with SUP 16.3.7 to SUP 16.3.10 (see SUP 16.3.6).
  • 18/04/2002