1. Reform Update Market Forum, 22 March 2006 Andy Brookes

2. Market Reform Update Contract Certainty –FSA –Guidance –Measurement –QA Tool Back office Electronic Infrastructure –ECF : Special topic –Accounting and Settlement Market Reform Update Page 1

3. Contract Certainty FSA: John Tiner speech (20/03/06) –Encouraged by progress –Not moving to a rule at this stage –But reserving the right –Rule is on the backburner, but not off the stove –Industry must keep making progress –Invitation to MRG to reconsider targets Contract Certainty Page 2

4. Accounting & Settlement Page 3 Contract Certainty Guidance published on late placements Can count as a contract certainty pass, providing terms are fully agreed Overplacing post inception : MRG stand by principle Signed Lines –Model clauses with QC –Signing instructions : should they stop? Legacy Code of Practice –Firms boards should formally adopt Contract Certainty Page 3

5. Accounting & Settlement Page 4 Contract Certainty Measurement December data 65% January data nearly ready –Brokers – check you have submitted Exceptions: broker pilot and guidance Lloyds bulletins clarifying data collection by managing agents Late orders Contract Certainty Page 4

6. Accounting & Settlement Page 5 Contract Certainty QA Tool Purpose : to define the quality checks applicable to Lloyds contracts Specify pre-bind checks that managing agents need to do Useful for brokers Live 31 March (on Lloyds.com now) Contract Certainty Page 5

7. QUALITY ASSURANCE TOOL SELECTION SCREEN Contract Certainty Page 6

8. QUALITY ASSURANCE TOOL RESULTS SCREEN Contract Certainty Page 7

9. QUALITY ASSURANCE TOOL EXPANDED RESULTS SCREEN Contract Certainty Page 8

10. QUALITY ASSURANCE TOOL UNDERWRITER PRE-BIND Contract Certainty Page 9

11. Accounting & Settlement Page 10 Measurement and checks –Q4 data, analysing benchmark graphs April –Accounting checks published end March Repository –Being built Strategy –Detailed documentation by July Accounting and Settlement