Bolt reiterates broker remuneration guidance

Tom Bolt, the director of performance management at Lloyd’s, has reissued guidance on distribution costs and broker remuneration.

In light of developments in placement structures and remuneration arrangements, Lloyd’s has decided to refresh and reissue its consolidated guidance. This incorporates the further guidance issued by Lloyd’s and the London Market Association in April 2012.

“Whilst Lloyd’s does not seek to interfere with the agreement of commercial arrangements in the market nevertheless, it is important that managing agents continue to properly consider the structure and terms of such arrangements to ensure their compatibility with relevant laws and regulations and to meet the very highest standards in their dealings with brokers for the benefit of Lloyd’s policyholders,” said the Lloyd’s market bulletin.