Lloyd’s to merge Council and Franchise Board

Lloyd’s to merge Council and Franchise Board

A photograph of the Lloyds Building in London from ground up

Lloyd’s has confirmed that it will merge the Council with the Franchise Board from June 2020 to create a unified governing body. 

The move represents the biggest shake-up of governance at the Corporation since the Franchise Board was established in 2002 and comes amid a market-wide overhaul of Lloyd’s based on CEO John Neal’s September blueprint. 

The change follows a five-month consultation with the market, with 90 percent of those consulted expressing support for the proposed merger.  

The revised council will be made up of 15 members, including six nominated members, six members elected by the market and three executives.  

The Lloyd’s nomination and governance committee is working with Corporation chairman Bruce Carnegie-Brown to identify the "best combination of members" of the council and the board to sit on the new, merged council.  

Lloyd’s market members will be invited to take part in an election process in April and May to choose the representative members of the council. 

Carnegie-Brown said: “By creating a single governing council, Lloyd’s will combine robust and accountable governance with the ability to make swift decisions when necessary.” 

The Franchise Board is currently made up 13 members, including five independent representatives, and three non-executive members connected to the Corporation. The other members include the chairman, CEO and executive directors Jon Hancock and Burkhard Keese. A majority of the 15 Council members are elected as working and external members. 

One drawback of the streamlined plan could be the reduction of oversight.  

However, Carnegie-Brown told this publication at the start of the consultation that one board “all in the same room” could provide better oversight than separate entities. 

He said the streamlined governance plan was designed to reduce duplication and inefficiency. 

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