James Counsell and Farhaz Khan act for the regulator before the Lloyd’s Enforcement Tribunal

In proceedings before the Lloyd’s Enforcement Tribunal, Mr Douglas Morgan and Mr John Josiah have each accepted two charges of detrimental conduct. The Lloyd’s Enforcement Tribunal approved terms of settlement agreed between the defendants and the Council of Lloyd’s (acting in its regulatory capacity) on the first day of what was to be a three week hearing.

During the period relevant to these proceedings Mr Morgan was the Finance Director of Equity Syndicate Management Limited (“Equity”), a Lloyd’s managing agent. Mr Josiah was the active underwriter of Syndicate 218 which was managed by Equity. Syndicate 218 specialises in the provision of motor insurance.

In October 2011 two charges of misconduct were brought against each of Mr Morgan and Mr Josiah. The charges related to the fact that as Finance Director and Active Underwriter respectively, Mr Morgan and Mr Josiah were each responsible for ensuring that adequate systems and controls were in place in respect of the areas of the business for which they were responsible, including certain aspects of the Syndicate’s reserving processes, and their failure to ensure that these standards were met in the specific instances as set out in the Notices of Censure accompanying the Lloyd’s Market Bulletin.

Mr Morgan gave an undertaking not to apply for a director position at a Lloyd’s firm for 3 years. Mr Josiah gave an undertaking not to apply for a director position at a Lloyd’s firm for 2 years.

The Council had reached a settlement with and had censured Equity in December 2011 for systems and controls failures http://www.ft.com/cms. The Council had also reached settlement with Neil Utley, former CEO of Equity http://www.outertemple.com/news-item/260/index.html.

James Counsell and Farhaz Khan represented the Council before the Lloyd’s Enforcement Tribunal, and have assisted Lloyd’s Legal and Compliance Department, on behalf of the Council in the conduct of the inquiry which preceded the proceedings and in instituting and conducting these proceedings.

News 15 Mar, 2013