The Davidson Review was finally published on Tuesday, recommending a number of red tape cutting measures that the FSA should instigate by July 2008.
The review, which has been looking at the implementation of EU legislation in relation to the Insurance Mediation Directive, recommends the FSA should:
• Simplify rules on product disclosure and reduce the amount of information that insurance intermediaries are required to provide to their customers when selling lower risk products
• Remove requirements for insurers to check that each intermediary in the supply chain is authorised
• Reduce and simplify the client money rules
• Cut prescriptive rules not required by the Insurance Mediation Directive or Distance Marketing Directive and revert back to a principles only approach.
Commenting on the recommend-ations, Nick Starling, the ABI's director of general insurance, said: "These recommendations make sense. They reflect our concern that regulation must focus on customer outcomes, being driven by a principles, not a prescriptive, approach."
The review was carried out by Neil Davidson QC at the request of the government.