IPRU-INV 4.4 FINANCIAL RESOURCE REQUIREMENTS

The Society must maintain appropriate and effective arrangements to require members’ agents to meet and continue to meet financial resource requirements at least equivalent to the requirements set out in Lloyd's Capital and Solvency Requirements 2001, as they are in force immediately before commencement.

The Society must give the FCA a report on each members’ agent's compliance with the financial resource requirements referred to in IPRU-INV 4.4.1D as at the end of each quarter (determined by reference to each underwriting agent's accounting reference date).

The report referred to in IPRU-INV 4.4.2D must reach the FCA within two months of the end of the relevant quarter and must state:

1. (1)

   whether the Society has any information indicating or tending to indicate that, during the quarter to which the report relates, the members’ agents failed to meet the financial resource requirements referred to in IPRU-INV 4.4.1D;

2. (2)

   whether, at the end of the quarter to which the report relates, the members’ agents failed to meet the financial resource requirements referred to in IPRU-INV 4.4.1D; an

3. (3)

   the nature and extent of any failure to comply reported under (1) or (2) and the actions taken or to be taken by the Society in response to this.

In addition to the reports required under IPRU-INV 4.4.2D, the Society must give the FCA an annual report on each members’ agents compliance or non-compliance with financial resource requirements as at the end of that members’ agent's financial year.

The report in IPRU-INV 4.4.4D must reach the FCA within seven months of that members’ agent's accounting reference date and must:

1. (1)

   confirm that:

   1. (a)

      the Society has received from that members’ agent in respect of the financial year to which the report relates, all relevant attachments to the Annual Financial Return that the members’ agent is required to make to the Society under the requirements identified in IPRU-INV 4.4.1D;

   2. (b)

      that members’ agent met the applicable financial resource requirements at the end of the financial year to which the report relates; and

   3. (c)

      the Society is not aware of any matters likely to be of material concern to the FCA relating to that members' agent's compliance with financial resource requirements during the year to which the report relates, or arising from the attachments referred to in (a); or

2. (2)

   if the Society is unable to give any of the confirmations required under IPRU-INV 4.4.5D (1)(a), (b) or (c), set out in each case the reasons why it is unable to give that confirmation.

The Society must submit the reports in IPRU-INV 4.4.2D to IPRU-INV 4.4.5D in accordance with the rules in SUP 16.3 (General provision on reporting).