LONDON (Reuters) - Lloyd's of London members have set up a working party to examine the commercial insurance market's plans to overhaul its conduct rules, a trade body said on Friday, following criticism of the strengthened powers in the new rules.

Lloyd's has come under pressure in recent years to clean up the market, home to nearly 50,000 people working for underwriters and brokers, after admitting to problems with daytime drinking and sexual harassment.

Lloyd's, which has some regulatory powers, said in September it would overhaul its rules on dealing with poor conduct, as its current processes could be unclear. Its consultation on the proposals ends on Monday.

Arabella Ramage, legal director for the Lloyd's Market Association, said in an email the trade body was "supportive of Lloyd’s' aim to ensure the market is well-run, and a great place for people to come and work".

The LMA will submit a response on behalf of its membership, she said.

The LMA has set up a working group about the consultation.

Plans for the working party follow an article in Reuters publication the Insurer in October by barrister Michael Uberoi, criticising the new rules.

Uberoi said in the article that some proposals were "remarkable in their breadth and ... would result in the Lloyd's regulator enjoying wider powers than those generally enjoyed by equivalent regulators".

The new proposals meant, for example, that anyone in the Lloyd's market alleged to be discussing a case which they had heard about, including from the media, would be at risk of disciplinary action, Uberoi said.

The LMA working party was considering various questions, including the concerns raised in the Insurer article, Ramage said.

Lloyd's did not immediately respond to a request for comment.

(Reporting by Carolyn Cohn; Editing by Rod Nickel)