Brokers have pinpointed the major areas of proposed FSA regulation that need more work before the rules take effect in 2004.

In a survey, members of the Folgate Masterplan network gave an overwhelming response to consultation about demands for contractual transparency and regulation of travel insurance.

  • 97% of respondents wanted Folgate Masterplan to persuade the FSA to improve the proposals for contractual suitability.

    Because each policy renewal is treated as a new contract, the current proposals would require annual checks on letter wordings, plain English policy wordings and telephone scripts.

    This is seen as a huge and impractical task, said a spokesman.

  • 95% said travel insurance sales must be regulated, either directly by the FSA or through a regime endorsed by the FSA and enforced by ABTA, while 78% said regulation should also cover the sale of extended warranties on electrical goods.

    One broker said it would be ridiculous for professional intermediaries to be more closely regulated than non-professionals.

    The network has passed its members' concerns to the FSA. It received 97 responses from 382 members within two weeks.

    Folgate Masterplan spokesman James Hart said: "The strength of the response from our members shows just how seriously brokers take these issues.

    "And also we can work out what brokers' needs are going to be, so we can give them strong support."

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