Lloyd's regime is incomplete warn experts
The new accounting regime implemented by Lloyd’s of London syndicates omits key disclosures and reduces transparency, analysts at credit rating agency Standard & Poor’s warn
Last year, the syndicates began reporting annually on a UK GAAP basis, but
ironically the disclosures under the old system, which was harshly criticised as
it only required syndicates to produce accounts every three years, were
superior, according to experts.
A research report by a team of Standard & Poor’s analysts said that under
UK GAAP the syndicates were permitted to exclude key disclosures that were
compulsory under the old rules.
‘Perversely, by moving to the standards of the company market, a number of
valuable disclosures have been, or are in the process of being lost. It is fair
to say that Lloyd’s original reporting regime provided a level of disclosure far
in excess of that mandated by UK GAAP’.
The agency is concerned this change is weakening consistency of reporting
within Lloyd’s.
Stuart Bridges, finance director of Hiscox, a member of Lloyd’s Syndicate 33,
said that the increased disclosure at plc level compensated for this.