MEPs set to clash over Lloyd’s inquiry

Date: 24/04/03

By Peter Chapman

MEPs are set to clash over moves to hold a full Parliamentary inquiry into whether the Lloyd's of London insurance market has been regulated in line with EU rules.

A report by UK Tory Roy Perry will call for the probe unless the European Commission gives MEPs a full statement explaining whether it believes the British authorities failed to ensure that Lloyd's was properly regulated in 1973-1995.

Perry sits on the Parliament's petitions committee - which has been inundated with complaints from bankrupted investors who lost money after the market was hit by massive asbestos claims. They claim these would have been foreseen if a proper audit been carried out in line with EU law.

Perry told a hearing on the issue ahead of next month's vote on his report that he fears the Commission is ignoring past failings and focusing instead on whether a new regime launched in 2000 meets the terms of an EU insurance directive covering Lloyd's.

"The Commission is brushing aside 30 years of the lack of the proper implementation of the directive," he said.

But Perry has received a mixed reaction from fellow MEPs.

British socialist Michael Cashman said the Commission should be given the chance to issue a final ruling on the case before the Parliament steps in.

"I see a committee of inquiry in the absence of a Commission judgement as merely a piece of theatre - and I should know about that," the former actor told European Voice.

"I see nothing to be gained from undue haste when we can give the Commission to the end of the year - enough time to deliberate and act wisely. I say give them a few more months to complete their deliberations and deliver their decision."

Only if the Commission then fails to deliver a satisfactory ruling should there be a formal inquiry, said Cashman, adding, "that is the proper way to conclude this sorry story".

Tory Alexander Stockton, grandson of former UK Prime Minister Harold Macmillan, said he would also reject Perry's report, adding that Lloyd's names should have known the market they were investing in was not risk-free.

MEPs are set to clash over moves to hold a full Parliamentary inquiry into whether the Lloyd's of London insurance market has been regulated in line with EU rules.