The British Insurance Brokers’ Association (BIBA) has today given its full backing to the Financial Services Authority (FSA) following the FSA’s announcement that it is to restart its funding review of the Financial Services Compensation Scheme (FSCS).
Eric Galbraith, BIBA CEO said: “The unfairness inherent in the current FSCS funding model is a major cause of concern to me and our members. We are being unfairly penalised by rapidly increasing levies for the mistakes of the credit sector, insurers and the regulator.”
“This funding review gives the FSA the chance to reconsider our two principal concerns with the current funding model. Firstly, we want separation in the insurance intermediary sub-class for the professional insurance brokers and are in discussions with our lawyers and consultants on how this might best be achieved." Galbraith added. "Secondly, we want an end to cross subsidies. The UK is the only state in the EU where insurance intermediaries are exposed to potential losses elsewhere in the financial services sector, putting our members at a commercial disadvantage compared to their European peers. BIBA will engage positively in the consultation process to ensure a more equitable funding mechanism.”
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