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Lloyd’s of London has ruled its former boss breached compliance rules after failing to disclose a “close” relationship with a female colleague.
The insurance market said the actions of John Neal, the former chief executive, “fell significantly below” its standards.
The failings led to a “missed opportunity” for Lloyd’s to potentially manage any concerns over a possible conflict of interest.
An investigation by the Council of Lloyd’s, the body supervising the London insurance and reinsurance organisation, said it could not find “conclusive evidence” that Mr Neal was romantically involved with then corporate affairs director Rebekah Clement.
It also found “no evidence of process failures” in relation to Ms Clement’s promotion to the role.
But it said the relationship “was sufficiently close during their employment at Lloyd’s that it could be viewed as creating a perceived conflict of interest”.
In a statement, the organisation said: “The investigation found that senior individuals at Lloyd’s raised concerns directly with Mr Neal during his employment at Lloyd’s regarding the nature of his relationship with Ms Clement.”
It said Mr Neal had acknowledged the concerns and responsibilities of Lloyd’s but added that it found “no evidence” the former boss made a material change in his conduct.
In a statement published by the Financial Times, a lawyer for Ms Clement said: “Rebekah is hugely disappointed with Lloyd’s’ conduct over the course of this investigation, the nature and length of which have caused her unnecessary stress and significant reputational damage relative to its ‘findings’.
“She is not surprised that Lloyd’s found no evidence of an inappropriate relationship with John Neal, nor any evidence of any failings in her promotion.
“Yet, Lloyd’s has still chosen to find against Rebekah, on the pretext of ‘perception’, the source of which was rumour, gossip and innuendo.”
Mr Neal left Lloyd’s in May last year and announced plans to join US insurance giant AIG as its president.
But in November, shortly before he was due to start, the company said he would no longer take the position because of “personal circumstances”.
Lloyd’s said it launched an investigation into the relationship and disclosures last November after fresh information had been raised to chair, Sir Charles Roxburgh.
