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All members of Lloyd's need assets to carry on underwriting business and must retain minimum funds at Lloyd's. This is in addition to any personal wealth held outside Lloyd's.

Funds retained at Lloyds comprise Premiums trust fund and 'Funds at Lloyd's', a term used to cover a number of funds as outlined below.

The holding of these funds is governed by Lloyd's regulations, which are designed to ensure that claims can be met, even in years where claims exceed premiums. The treatment for taxation depends on the type of fund and differs for companies and individuals.

There is a basic hierarchy of funds. The main types of fund are¹:

1. Ìý

   •ÌýÌýÌýÌý Premiums trust funds²

2. Ìý

   •ÌýÌýÌýÌý Funds at Lloyd's (FAL), comprising Lloyd's deposit, personal reserve fund (and for Names, special reserve fund)³

3. Ìý

   •ÌýÌýÌýÌý Lloyd's central fund⁴

4. Ìý

   •ÌýÌýÌýÌý Other personal wealth⁵