London, 15 April 2026: The Lloyd’s Market Association (LMA) has today published new guidance for managing agents on PS25/21: Simplifying the insurance rules, supporting firms in applying the Financial Conduct Authority’s (FCA) more proportionate regulatory approach to commercial and wholesale insurance business.

The guidance is designed specifically for Lloyd’s managing agents and highlights key updates to the FCA rulebook arising from PS25/21, including how firms can take advantage of greater flexibility within product governance, oversight and review requirements, while continuing to deliver good outcomes for customers.

PS25/21 represents the FCA’s first policy statement aimed at unwinding some of the regulatory burden that followed the pricing practices market study, where rules designed for retail products were applied across all general insurance business. The LMA guidance explains how managing agents can use the revised framework to focus conduct risk resources where they are most needed.

Key areas covered in the guidance include:

• Proportionality based on customer type and size, including application of a new SME watershed aligned with Financial Ombudsman eligibility.
• Wider use of the bespoke exemption, enabling tailored and open market business for smaller business customers and individuals to sit outside product governance requirements where appropriate.
• Greater flexibility around accountability, including the ability for a lead underwriter to assume sole responsibility for manufacturer obligations on subscription and binder business.
• A more risk-based approach to product review frequency, removing the default annual review requirement.

Commenting on the guidance, John Levett, Head of Regulatory Affairs at the LMA, said: “PS25/21 is a first step towards a more proportionate regulatory regime for the London market. This guidance has been drafted in collaboration with managing agents and shared with the FCA for comment before publication. Applying these changes should reduce the regulatory burden for the majority of our members. We thank the FCA for all the hard work it has done so far.

“There are still changes needed to better support our market and deliver on the international competitiveness and growth objective. Trading in 200 territories, all with their own rules and regulators, is highly complex and can lead to differences between UK and local rules. We will therefore continue to lobby the FCA on developing a regulatory framework appropriate for international business being written in the Lloyd’s market.”

The guidance also includes practical commentary, worked examples and decision trees to help firms assess the application of the rules in areas such as bespoke business, specialist risks and group policies.

ENDS

Media relations contacts

LMA:

Carole Porter, Head of Marketing and Communications

+44 20 3307 3947 | carole.porter@lmalloyds.com

Omnia Partners:

Victoria Sisson, Partner

+44 794 129 4872 | victoria.sisson@weareomniapartners.com

About the Lloyd’s Market Association

The Lloyd’s Market Association (LMA) exists at the very heart of Lloyd’s, a world-leading global marketplace for complex risk where solutions to challenges are delivered every day. 59 Lloyd’s managing agents and members’ agents are members of the LMA.

We represent our members’ interests to organisations including governments, regulators, and the market’s central supporting body, the Corporation of Lloyd’s. We provide professional and technical expertise in areas ranging from model policy wordings to the implementation of innovative technologies. We connect with our members to identify and resolve issues facing the market, and work in partnership with Lloyd’s and the other market associations to influence initiatives and outcomes. We operate the market’s most comprehensive technical education service, the LMA Academy. For more information visit: www.lmalloyds.com.