In the Lloyd’s of London insurance market, transparency and regulatory compliance are paramount. Managing Agency Partners Limited exemplifies these principles by proactively disclosing information regarding connected persons to ensure market integrity and confidence. This article delves into the concept of a ‘connected person’ in the context of managing agency partners, using the example of MAP Capital Limited and its relationship with Syndicate 2791.
A ‘connected person’ within the Lloyd’s capacity auction framework refers to an entity that, while not directly owned or controlled by a managing agency, has significant commonalities in directors, owners, or staff. This connection necessitates transparency to avoid potential conflicts of interest and maintain fair market practices. In the case of Managing Agency Partners Limited, MAP Capital Limited is identified as a connected person. This is because, despite separate ownership structures, there are shared directors and owners between the two entities.
MAP Capital Limited plays a specific role within Syndicate 2791. It serves as a corporate member facilitating participation for certain third parties and staff of Managing Agency Partners Limited. Furthermore, MAP Capital Limited controls underwriting capacity on S2791 for its shareholders, known as ‘own account underwriting’. This dual role necessitates clear communication and adherence to regulatory guidelines, particularly concerning Lloyd’s capacity auctions.
From time to time, MAP Capital Limited may engage in Lloyd’s capacity auctions, acting on instructions from its third-party shareholders to tender or subscribe capacity for Syndicate 2791. Crucially, all such transactions are executed on an ‘execute only’ basis, ensuring MAP Capital Limited acts solely as an intermediary without discretionary decision-making in the auction process. This procedural approach reinforces the arm’s length nature of these transactions.
In situations where MAP Capital Limited receives instructions related to a shareholder who is also a staff member of Managing Agency Partners Limited, even stricter protocols are applied. Managing Agency Partners Limited commits to reviewing all applicable auction guidelines and, when deemed necessary, providing specific auction disclosures. This commitment highlights their dedication to maintaining the highest standards of transparency and ethical conduct within the Lloyd’s market.
For further information or clarification regarding this disclosure, stakeholders are encouraged to contact Paul Langridge, the Agency contact at Managing Agency Partners Limited, using the provided contact details. This proactive communication and transparent approach to connected person status underscores the commitment of Managing Agency Partners Limited to best practices in managing agency partnerships within the Lloyd’s framework.
