Lloyd's and Government Regulation of Insurance and Investment

Regulation of the two main aspects of Lloyd's operations -- raising capital from investors, and writing insurance or reinsurance-- fall under the jurisdiction of separate state and federal securities or insurance laws and regulatory agencies.

• Investor recruitment falls within the purview of the US Securities and Exchange Commission ("SEC"), and the securities law and regulatory departments of the individual states.
• Regulation of Lloyd's insurance underwriting in the US is left up to the various states' overworked and underfunded insurance regulatory agencies. The US has no federal insurance department.

Lloyd's often took advantage of the lack of communication between the various state regulators. It is doubtful whether the investor fraud that Lloyd's is accused of would have been possible if one government agency had oversight of all of Lloyd's activities in the US.

U.S. Agencies - | - British Regulation

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