Lloyd’s of London has ruled that its former boss John Neal breached compliance rules by failing to disclose a “close relationship” with a female colleague that risked triggering conflict of interest concerns at the insurance market.

An investigation by the Council of Lloyd’s, which is responsible for the market’s management and supervision, said it could not find any “conclusive evidence” Neal was romantically involved with the company’s then corporate affairs director, nor that there were any process failures relating to her promotion during Neal’s tenure.

However, it said the pair were close enough to cause senior managers to raise questions directly with Neal.

“Based on the findings of the investigation, the Council of Lloyd’s found that the relationship between Mr Neal and … Rebekah Clement was sufficiently close during their employment at Lloyd’s that it could be viewed as creating a perceived conflict of interest. This was not disclosed by either Mr Neal or Ms Clement,” the council said.

Neal served as chief executive of Lloyd’s of London from 2018 to 2025. Lloyd’s launched the investigation into the relationship and disclosures in November 2025, after its chair, Sir Charles Roxburgh, became aware of fresh information about the relationship.

The council said Roxburgh had also become aware of a series of whistleblower reports dating back to 2023, which had not been escalated, in a breach of the market’s own governance rules that was immediately reported to the Financial Conduct Authority.

While mention of the whistleblower reports emerged in the same release as its findings against Neal, Lloyd’s said that it could not share the nature of the allegations or the identities of who the allegations related to, in order “to protect the identity of the whistleblowers”.

Investigators said senior managers at Lloyd’s raised their concerns about the relationship directly with Neal “on more than one occasion”. And while the former chief executive acknowledged their concerns and his responsibilities, and “undertook to modify his conduct”, there was “no evidence of material change in Mr Neal’s conduct thereafter”.

The council said it struggled to gain relevant information at the start of the investigation, given that Neal and Clement had both left the company and “declined to answer questions relating to the nature of their relationship”. It added that Neal also turned down a request to provide access to his mobile phone. Investigators ended up interviewing 40 witnesses, many of whom, it said, came forward “late in the process”.

The secrecy surrounding their relationship constituted a breach of the company’s global compliance policy, which requires any real or potential conflict of interest to be disclosed, the investigation concluded.

Failure to divulge the information also “fell significantly below the standards expected of Lloyd’s senior leaders and was detrimental to the interests of the corporation and the Lloyd’s market”, it said.

Lloyd’s said it had written to Neal to explain that it would have cancelled any pending payouts as a penalty. However, Neal had already forfeited his unvested pay when he resigned from Lloyd’s last year.

Roxburgh said Lloyd’s had since strengthened its internal processes. “These were serious failures that should never have been allowed to happen.

“These findings underline the importance of robust governance structures and processes. Where standards were not best in class, we have put that right. However, governance can only ever be part of the answer. Culture and personal accountability also play a vital role. That is why the Council of Lloyd’s is unequivocal about the behaviour we expect from everyone, at every level, at the Corporation of Lloyd’s.”