LLD 15.13 Syndicate-level reporting
Each managing agent must:
- (1)
prepare a return for each financial year in respect of the insurance business carried on through each syndicate managed by it; and
- (2)
provide the return in (1) to the Society as soon as practicable after the end of the financial year but in any event in time to enable the Society to report to the FSA in accordance with LLD 15.2.1 R.
The Society must:
- (1)
issue instructions to managing agents setting out the form and content of the return under LLD 15.13.1 R; and
- (2)
issue the instructions in (1) as soon as practicable but in any event in time to enable managing agents to comply with LLD 15.13.1 R.
A managing agent must annex to each return which it prepares under LLD 15.13.1 R, a certificate signed by the persons referred to in LLD 15.13.4 R, including the statements required by LLD 15.13.5 R.
The certificate in LLD 15.13.3 R must be signed by:
- (1)
where there are more than two directors of the managing agent, at least two of those directors and, where there are not more than two directors, all the directors; and
- (2)
a chief executive, if any, of the managing agent or (if there is no chief executive) the secretary.
1 |
The certificate in LLD 15.13.3 R must state that: |
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(1) |
the return has been properly prepared in accordance with the instructions referred to in LLD 15.13.2 R; |
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(2) |
proper accounting records have been maintained and adequate information has been obtained by the managing agent; |
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(3) |
an appropriate system of control has been established and maintained by the managing agent over the syndicate's transactions and records; |
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(4) |
in relation to the statement by the syndicate actuary of a syndicate carrying on long-term insurance business required by LLD 15.9.1 R (3): |
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(a) |
proper accounts and records have been maintained for the purpose of preparing the statement; and |
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(b) |
the information given has been ascertained in conformity with LLD 15 Annex 4 R. |
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A managing agent must ensure for each syndicate managed by it that the return required under LLD 15.13.1 R is examined and reported on by the syndicate auditor.1
2The statements required to be annexed to the return by LLD 15.13.9 R should not be included in the audit under LLD 15.13.6 R.
A managing agent must annex to each return required under LLD 15.13.1 R an audit certificate provided by the syndicate auditor including the statements required by LLD 15.13.8 R.1
1 |
The certificate in LLD 15.13.7 R must state: |
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(1) |
that in the auditors' opinion, the return has been properly prepared in accordance with the instructions referred to in LLD 15.13.2 R; |
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(2) |
that according to the information and explanations that the auditors have received: |
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(a) |
in their opinion, the certificate required to be signed in accordance with LLD 15.13.3 R (other than statements to which paragraph 1(3) relates) has been properly prepared in accordance with the instructions; and |
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(b) |
it was or was not unreasonable for the persons giving the certificate to have made the statements in it (other than statements to which paragraph 1(3) relates); |
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(3) |
the extent to which, in giving their opinion, the auditors have relied, in respect of long-term insurance business, on the work of the syndicate actuary. |
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2 |
The audit opinion required by paragraph 1 does not extend to cover information on major treaty reinsurers or major facultative reinsurers. |
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3 |
To the extent that the information and explanations they have received do not allow the auditors to express an opinion as to whether it was or was not unreasonable for the persons giving the certificate required to be signed in accordance with LLD 15.13.3 R to have made the statements therein, the auditors must add to their report such qualification, amplification or explanation as may be appropriate.1 |
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2A managing agent must annex to each return which it prepares under LLD 15.13.1 R a statement of the information required by IPRU(INS) rule 9.32A, as if in that rule references to:
- (1)
'insurer' were to the members carrying on insurance business through the relevant syndicate;
- (2)
the 'return' were to the return required to be prepared by it in respect of the business carried on through the relevant syndicate under LLD 15.13.1 R;
- (3)
the 'insurer's balance sheet' were to the syndicate balance sheet;
- (4)
the 'insurer's capital resources' were to the capital resources managed by or at the direction of the managing agent in respect of the insurance business carried on through the relevant syndicate; and
- (5)
the 'insurer's total technical provisions' were to the technical provisions in respect of the insurance business carried on through the relevant syndicate.