Brussels, 12/12/2002 (Agence Europe) - Next week, the Commission may decide to pursue an infringement procedure against Lloyd's of London and its reinsurance company Automobile Equitas, Jonathan Todd, spokesman for Commissioner Frits Bolkestein, said on Thursday. The Commission will scrutinise implementation by the British Government of legislation over bank supervision, notably the legislation that calls on the authorities of the Member State to ensure that financial organisations have sufficient reserves to cover their liability, he stipulated. The Commission had initiated a formal procedure against the United Kingdom in December 2001.
The European Parliament's Committee on Petitions has taken up the cause of the "Names" of Lloyd's, ruined through losses made by the insurance company in the 80s. This individuals commit their personal assets as guarantee, with unlimited liability, as counterpart for a share of any profits made by Lloyd's insurance activities. They turned to the Committee on Petitions considering that the United Kingdom had not correctly transposed the 1973 insurance directive, which would have made Lloyd's have sufficient reserves to cover its losses (see EUROPE of 12 October, p.15). In a draft resolution, presented to the Committee on Petitions this week, British Conservative Roy Perry calls for the EP to be informed on the procedure and to have access to the Commission's documents of inquiry. Speaking to MEPs, Mr. Bolkestein undertook to take a decision before 17 December.