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  1. Point in time
    2007-08-28

DISP 1.7 The Society of Lloyd's

DISP 1.7.1RRP

The Society of Lloyd's must establish and maintain appropriate and effective procedures for handling complaints by policyholders against members of the Society, which comply with DISP 1.

DISP 1.7.2RRP

Members of the Society of Lloyd's must, in complying with DISP 1, ensure that the arrangements which the member maintains are compatible with the procedures maintained by the Society in accordance with DISP 1.7.1 R, so that, taken as a whole, the requirements of DISP are met.

DISP 1.7.3GRP

The Society of Lloyd's must take reasonable steps to ensure that complaints by policyholders against members of the Society are dealt with under the procedures in DISP 1.7.1 R and that members comply with the requirements of those procedures.

DISP 1.7.4R

A complaint by a policyholder against a member of the Society of Lloyd's may not be referred to the Financial Ombudsman Service until after the internal procedures in DISP 1.7.1 R have been completed or until after the end of eight weeks from receipt of the complaint, whichever is the earlier.

DISP 1.7.5R

Notices under DISP 1.1.7 R must be given to the FSA by the Society of Lloyd's on behalf of any member eligible for an exemption under that rule.

DISP 1.7.6R

The Society of Lloyd's must notify the FSA if the conditions in DISP 1.1.7 R no longer apply to a member who is exempt.

DISP 1.7.7R

The report in DISP 1.5.4 R must be provided by the Society of Lloyd's and must cover all complaints by policyholders against members falling with the scope of DISP 1.5.4 R.

DISP 1.7.8G

Each member of the Society of Lloyd's is individually subject to the rules in DISP 1 as a result of the insurance market direction given in DISP 2.5.4 G 2 under section 316 of the Act (Direction by Authority).

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DISP 1.7.9G

However, the Society of Lloyd's operates a two-tier internal complaints handling procedure, currently set out in the "Code for Underwriting agents: UK Personal Lines Claims and Complaints Handling". Under this procedure, complaints by policyholders against members of the Society are considered by the managing agent and then, if necessary, by the Society of Lloyd's in-house Complaints Department. This procedure (and any procedure that may replace it) will be subject to the requirements in DISP 1.

DISP 1.7.10G

Members will individually comply with DISP 1 if and only if all complaints by policyholders against members are dealt with under the internal procedure established by the Society of Lloyd's for handling those complaints, provided that this procedure complies with DISP. Accordingly, certain of the obligations under DISP 1, for example the obligation to report on complaints received and the obligation to pay fees under FEES 5 1 4 , must be complied with by the Society on behalf of members. Managing agents will not have to make a separate report to the FSA on complaints reported under DISP 1.7.7 R.

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DISP 1.7.11R

A members' adviser must establish and maintain effective arrangements for handling any complaint from a member of the Society of Lloyd's regarding advice given to the member in connection with the acquiring or disposing of syndicate participation.

DISP 1.7.12G

Complaints from members of the Society of Lloyd's regarding the activities of members' advisers, which cannot be resolved by the members' adviser, cannot be referred to the Financial Ombudsman Service.

2
DISP 1.7.13G

2The Financial Ombudsman Service is not be able to deal with the complaints listed in DISP 1.7.14 R and separate rules and guidance are therefore required.

DISP 1.7.14R

2The Society must establish and maintain appropriate and effective arrangements for handling any complaint from a member or a former member about:

  1. (1)

    regulated activities carried on by the Society;

  2. (2)

    the Society's regulatory functions carried on by the Society, the Council or those to whom the Council delegates authority to carry out such functions;

  3. (3)

    advice given by an underwriting agent to a person to become, continue or cease to be, a member of a particular syndicate; and

  4. (4)

    the management by a managing agent of the underwriting capacity of a syndicate on which the complainant participates or has participated.

DISP 1.7.15R

2The Society must maintain by byelaw one or more appropriate effective schemes for the resolution of disputes between an individual member or a former member who was an individual member and:

  1. (1)

    his underwriting agent; or

  2. (2)

    the Society.

DISP 1.7.16R

2For the purposes of DISP 1.7.14 R "individual member" includes a member which is a limited liability partnership or a body corporate whose members consist only of, or of the nominees for, a single natural person or a group of connected persons.

DISP 1.7.17G

2The schemes to which DISP 1.7.14 R currently refers are the Lloyd's Arbitration Scheme and the Lloyd's Members' Ombudsman respectively, but the Society may maintain other independent dispute resolution schemes in addition to, or instead of, either of these schemes.

DISP 1.7.18G

2The schemes referred to in DISP 1.7.14 R should be operationally independent of the Society.

DISP 1.7.19G

2An individual member or former member who was an individual member should not have access to the schemes referred to in DISP 1.7.14 R unless the complaints arrangements maintained by the Society have failed to resolve the complaint to his satisfaction within eight weeks of receiving it.

DISP 1.7.20G

2The Society should give the FSA adequate notice of all proposed changes to the byelaws relating to the schemes referred to in DISP 1.7.14 R.

DISP 1.7.21G

2When considering what is required to ensure the operational independence of the schemes referred to in DISP 1.7.14 R, or proposed changes in such schemes, the Society should take account of similar arrangements operated by the Financial Ombudsman Service.

DISP 1.7.22R

2A contravention of DISP 1.7.14 R or DISP 1.7.15 R 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.