A third of brokers have no controls in place to ensure placement service agreements do not breach forthcoming FSA regulations, according to research by Biba.

The survey found that 50% of brokers had profit share or volume overrider arrangements with an average of three insurers.

Of those with such deals, two thirds had arrangements in place to ensure that they did not cause a conflict of interest with the customer.

But it also revealed that a third did not have any systems to avoid a conflict, although the brokers claimed to be making such arrangements.

Biba regulation and compliance manager Steve White said the figures were "encouraging".

"They endorse the feeling that the practices in the US are not reflected in the UK".