The Forum will continue to meet fortnightly and the LMA and Working Group Chairs will continue to meet on the alternate weeks with Lloyd’s and the Project Clock team. The Forum will move to weekly, if necessary. We will report back any major concerns.

If you would like your managing agency to be represented at the Forum, please contact steve.morrell@lmalloyds.com to be added to the invitations.

The most recent meeting was held on 18 May and below are the current outstanding actions that we are working through:

• Oversight managers’ Job descriptions — Currently with HR Team for review and to be shared at the end of the week, subject to feedback. Will also follow up to confirm that this will be done on a class-of-business basis.
• Secondment model –
  • Discussed the approach with the tripartite and commercial secondment agreements. These agreements are being revised currently and it is anticipated that they will be shared with the LMA ahead of the session next Tuesday.
  • Discussed feedback received to date on the draft tripartite secondment agreement and this will be factored into the revised tripartite and commercial secondment agreements.
  • Three related items were discussed:
    • Project team were asked to produce some TUPE analysis regarding the secondment model.
    • Project team were asked to consider whether there are any competition law issues with the secondment model.
    • Project team will arrange a session to discuss underwriting activities and the control oversight framework and how it will operate in practice (that would involve the LMA and all relevant project workstreams).
• Tax advice – Main detail was not in the toolkit v2. Lloyd’s Head of Tax will review and a Q&A will take place before the deadline of 31 May. The advice will be shared with forum members via Mr Morrell and Ms Hayes.
• Option 1 proportionality – Regulatory discussions on proportionality of secondment arrangements are ongoing. Current assumption is FTE. Toolkit references 3 – 5 FTE but only a working assumption. It was noted that the extent of UW actions considered to be on behalf of LIC could lead to a substantial increase in that number. Project team expects to have something in writing in due course.
• Referrals/parameters of escalation – Project team to follow up with underwriting workstream to provide more detail on what the parameters of referrals/escalation will be.
• Further guidance – Forum to consider whether further guidance should be provided to managing agents on activities beyond those specific to underwriting, or whether they are outside scope of this engagement. Forum to provide list of relevant non-underwriting activities, if there are any.
• Central processing – Assumption is that it will continue in Belgium.
• Booked in Belgium. Discussion with PRA regarding capital to be confirmed.

Charging model –

• • Being drafted and available imminently with the forum being included in distribution.
  • Tax information on charging model to be shared with the group. [See attachment]
• Qualifications/Training – Confirmed that exams can be taken online. Further update to be provided by the project team.
• Reporting – Project team to confirm how we identify the relevant business for UK branch reporting.
• Oversight – Project team to confirm how it would be identified that someone did IDD activity that they were not supposed to do (i.e. if someone used a LIC stamp if they were not under the secondment agreement).

Deloitte has set out the secondment issues which were discussed at the meeting here. Please let me know if there are additional points to include.

The LMA Lloyd’s Europe Operating Model Forum will continue to send regular updates following Forum meetings.

For further information, please contact Jane at Jane.Hayes@lmalloyds.com, Rob at Rob.Myers@lmalloyds.com or Kees at Kees.VanDerKluut@lmalloyds.com.

Jane Hayes
Underwriting Director