LLD 15 Annex 2 Certificate by the Council (see LLD 15.9.1R(1))

1

Subject to 5, the certificate required by LLD 15.9.1R(1) must state:

(1)

in relation to Forms 9 to 17, 20 to 42, the supplementary notes to the forms and the statements required under LLD 15.5.1 R, LLD 15.6.1 R and LLD 15.7.1 R, LLD 15.8.1 R, LLD 15.5.5 G and LLD 15.8.8 R, that:

(a)

the Lloyd's Return has been prepared in accordance with LLD 9 to LLD 15;

(b)

proper accounting records have been maintained and adequate information has been obtained by the Society; and

(c)

an appropriate system of control has been established and maintained by the Society over its transactions and records;

(2)

that reasonable enquiries have been made by the Society for the purpose of determining whether any persons are connected for the purposes of LLD 9 to LLD 15;

(3)

that, as applicable, the assets held by members throughout the financial year in question enabled the Society to comply with LLD 14.3.1 R (Currency matching and localisation); and

(4)

in relation to the statement required by LLD 15.9.1 R (2) to be made by the Lloyd's actuary, that:

(a)

for the purpose of preparing the statement, proper accounts and records have been maintained; and

(b)

the information given has been ascertained in conformity with LLD 15.9.1 R.

2

Subject to 5, the certificate required by LLD 15.9.1 R (1) must state that the required margin has been maintained throughout the financial year in question.

3

Subject to 5, the certificate required by LLD 15.9.1 R (1) must also state in relation to the long-term insurance business carried on by members:

(1)

that the requirements of IPRU(INS) 3.1R to 3.5R have been fully complied with and in particular that, subject to the provisions of IPRU(INS) 3.2R(3), assets attributable to long-term insurance business, the income arising, the proceeds of any realisation of such assets and any other income or proceeds allocated to the long-term insurance business fund or funds have not been applied otherwise than for the purpose of the long-term insurance business;

(2)

that any amount payable from or receivable by the long-term insurance business fund or funds in respect of services rendered by or to any other business carried on by a member or by a person who, for the purposes of IPRU(INS) 3.4R, is connected with it or is a subsidiary undertaking of it has been determined and where appropriate apportioned on terms which are believed to be no less than fair to that fund or those funds, and any exchange of assets representing such fund or funds for other assets of the member has been made at fair market value;

(3)

that all guarantees given by a member of the performance by a related insurer which would fall to be met by any long-term insurance business fund have been disclosed in the Lloyd's Return, and that the fund or funds on which each of those guarantees would fall has been identified in it;

(4)

that the return in respect of long-term insurance business is not distorted by agreements between the members concerned or by any arrangements which could affect the apportionment of expenses and income; and

(5)

that IPRU(INS) 3.5R has been fully complied with.

4

Subject to 5, where the Council is satisfied that:

(1)

the systems of control established and maintained by managing agents complied, at the end of the financial year in question, with any relevant guidance and it is reasonable to believe that those systems continued so to comply and will continue to so comply; or

(2)

the Lloyd's Return has been prepared in accordance with any relevant guidance; this must be so stated, by listing that guidance, in the certificate required by LLD 15.9.1 R (1).

5

Where, in the opinion of those signing the certificate, the circumstances are such that any of the statements required by 1 to 4 cannot truthfully be made, the relevant statements must be omitted.

6

Where, by virtue of 5, any statements have been omitted from the certificate this fact must be stated in a note.