Brokers say no to 'appointed representative'

Brokers are unlikely to want to become appointed representatives, according to Biba.

In their response to CP159, Biba and the London Market Brokers Committee (LMBC) said the proposal limiting the activities of appointed representatives to advising and arranging insurance will be the key restriction that stops brokers from adopting appointed representative status.

The organisations said that to make the appointed representative scheme more palatable, the rules should be extended so that appointed representatives could undertake any activities conducted by their principal agent.

This would include authorising appointed representatives to administer contracts and handle claims.

Biba chief executive Mike Williams said that, as proposed, the consultation paper will not encourage brokers to become appointed representatives. "We'd be very surprised if anybody wanted to become an appointed representative as it stands," he said.