The British Insurance Brokers’ Association (BIBA) has welcomed further clarification from the Financial Services Authority (FSA) on the transition to the new regulator, the Financial Conduct Authority (FCA).
The FSA’s paper Journey to the FCA provides long-awaited and welcome detail on the important changes that will impact members when the FCA becomes effective in early 2013.
“We welcome the signal in the paper that the FCA will work closely with trade associations going forward," says Steve White, BIBA’s head of compliance and training. "We have been in regular contact with the FSA as they have put their plans together and we will continue this as the transition to the FCA happens. However, we continue to remind the regulator that regulation needs to be appropriate, proportionate and cost effective.”
BIBA has been working with politicians and Lords to suggest amendments to the Financial Services Bill so that the government can ensure there is downward pressure on costs for brokers, and that regulation is proportionate to the low risks that brokers pose.
“Regulation is the big issue on members’ agenda," adds Eric Galbraith, BIBA’s chief executive. "The paper from the FSA is a positive step but we still want certainty from the government that the cost and style of regulation is proportionate to the low risk and nature of insurance brokers. We are not asking for light regulation, but the right regulation and are looking forward to working even closer with the FCA.”
The FSA’s paper sets out a new level of detail on key areas, such as the new powers, the authorisation process, supervision procedures, enforcement, new policy risk and research decisions, maintaining relations with stakeholders and how the FSA will be more accountable and transparent.
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