Sanctions issues for Lloyd's of London coverholders

Lloyd's managing agents that delegate to coverholders must adroitly balance a proportional risk-based approach toward their sanctions liability alongside commercial considerations. Richard Burger and Ben Nicholson report.

Richard Burger is a partner and Ben Nicholson a trainee solicitor with city law firm Reynolds Porter Chamberlain. Ben has worked as a legal and regulatory assistant with a Lloyd's managing agent. Contact them at richard.burger@rpc.co.uk and ben.nicholson@rpc.co.uk.

Navigating the choppy waters of the international financial and trade sanction regimes is a constant challenge for all participants at Lloyd's of London, especially those with coverholders. When a Lloyd's managing agent delegates authority to a third party to underwrite and/or settle claims on its behalf, it remains responsible for the third party's sanctions compliance.