BIBA calls for regulation action

In his letter to the Chancellor, Eric Galbraith, BIBA’s Chief Executive, highlighted his concerns that the Financial Services Bill does not include any downward pressure on the cost of regulation or protect the UK’s competitive position. The Bill is due to receive Royal Assent before Christmas.

He called for the government to ensure that the incoming Financial Conduct Authority considers the unfair and disproportionate impact which current regulatory proposals could have on insurance brokers. Outlining the regulatory burden on brokers Galbraith said that some brokers were threatening to withdraw from some sectors of the personal lines insurance market as a result.

Galbraith also called for government to consider BIBA’s alternative solution to the FSCS that it has submitted to the Financial Services Authority as a fairer solution for insurance brokers.  Raising his concerns about current proposals, he highlighted issues around the substantial increases to the financial cap on the intermediary sub-class and the creation of a retail pool that could have serious consequences for brokers. 
 
Galbraith also said in his letter that there was “considerable scope” for the government to ensure that the sector is supported in its efforts to generate jobs and growth for the UK economy.