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LLOYD'S DEPOSIT DEFENCE GROUP SEEKS EUROPEAN COMMISSION RESTRAINT OF LLOYD'S

 LLOYD'S DEPOSIT DEFENCE GROUP SEEKS EUROPEAN COMMISSION
 RESTRAINT OF LLOYD'S
 LONDON, Oct. 26 /PRNewswire/ -- The Lloyd's Deposit Defence Group, represented by a sample of members drawn from the United Kingdom, Ireland, France, Belgium and Germany, today delivered to the European Commission a 100-page complaint against Lloyd's under the competition rules contained in Articles 85 and 86 of the Treaty of Rome. This is the first such complaint against Lloyd's that has been made to the European Commission.
 The Group seeks interim measures against Lloyd's to restrain the drawdown of deposits and other calls on Names whilst the Commission considers the complaint: many members of Lloyd's have already been threatened with the loss of their homes and personal possessions following the enormous losses at Lloyd's over the past few years.
 The basis for the complaint is that Lloyd's has failed to supervise adequately or to establish rules that would ensure proper working practices in the Lloyd's insurance market. In particular, the complaint cites the conflict of interest between working and external Names and between the underwriters of one financial year and of the next.
 In addition, the complaint demonstrates that the market is corrupt in relation to the opportunity to participate on the better syndicates. As a result, an external name lost on average 8,400 pounds sterling on average underwriting capacity between 1983 and 1990. In contrast, Lloyd's committee members made profits of 55,500 pounds and active underwriters 48,000 pounds on the same basis.
 The Group's solicitors, S J Berwin and Co have written to Lloyd's insisting on an immediate undertaking that no further deposits will be drawn down until the Commission has ruled on its request for interim measures.
 -0- 10/26/92
 /CONTACT: Richard Slowe or Bernadine Adkins of S J Berwin in London, 44-71-837-2222, or Alex Sandberg or Simon Rothschild of College Hill Associates in London, 44-71-236-2020/ CO: Lloyd's Deposit Defence Group ST: IN: SU:


PS -- NY009 -- 4506 10/26/92 07:01 EST
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Publication:PR Newswire
Date:Oct 26, 1992
Words:329
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