DFSA and Society of Lloyd’s establish Framework for Co-operation

The Dubai Financial Services Authority, DFSA, has entered into an arrangement today with the Society of Lloyd’s to establish a Framework for Co-operation.

The Framework was signed by the Chief Executive of the DFSA, Ian Johnston, and the Chairman of Lloyd’s, John Nelson. The Framework promotes an efficient and effective flow of information between the DFSA and the Society of Lloyd’s in relation to Lloyd’s Syndicate Service companies and other coverholders who operate in the Dubai International Financial Centre.

This Framework for Co-operation recognises the mutual benefit of sharing information to promote effective supervision of Lloyd’s coverholders. While the DFSA has the responsibility for the licensing and supervision of Lloyd’s coverholders in the DIFC, the Society of Lloyd’s has statutory and supervisory powers relating to Lloyd’s market participants who appoint the coverholders. Through a DIFC subsidiary, Lloyd’s Ltd., it will provide a number of services to those coverholders. This creates a common interest between the DFSA and Lloyd’s in seeking to ensure that these entities conduct their business properly and effectively.

Ian Johnston said, "The establishment of the Framework marks a significant step in the evolution of Lloyd’s presence in the DIFC. While several Lloyd’s participants have been licensed to conduct insurance activities in the DIFC for over a decade, Lloyd’s Ltd.’s presence in the DIFC began in 2015. Its presence adds depth to the DIFC insurance market. We welcome them and look forward to strengthening our relationship with the Society of Lloyd’s."

Lloyd’s Chairman, John Nelson, said, "This Framework for Co-operation recognises the responsibilities and common interests between Lloyd’s and the DFSA in ensuring the activities of Lloyd’s coverholders in the DIFC are appropriately conducted and supervised. The Lloyd’s market has evolved over 328 years and, in doing so, we have developed a robust and tested framework for monitoring the syndicates and business within the market and sharing our intelligence and insights with regulatory bodies."

"We are delighted to mark the first anniversary of the Lloyd’s Dubai platform. The presence of the Lloyd’s underwriting community in the DIFC allows us to build stronger relationships and deeper risk insights across the region and we are seeing promising business growth as a result of this investment," Mr. Nelson added.

Source:WAM