Biba has come out against a two-tier regulatory system for claims management companies.
The industry body was reacting to the parliamentary debate about the draft Compensation (Exemptions) Order.
Biba chief executive Eric Galbraith said: “While the regulation of claims management companies is to be welcomed in today's environment, it seems nonsensical to create a second tier of regulation for an intermediary sector that is already regulated by the FSA.
“Biba has already raised this with the DCA, and will continue to campaign for better regulation. However, while the Department has recognised this issue, the Act continues to place an unnecessary burden of regulation on intermediaries.”
