Jack Straw has branded as “preposterous” the ABI’s argument that it cannot take an industry-wide stance not to take referral fees due to competition law constraints.
The ABI backs a government ban on referral fees, but says that it has received legal advice that it cannot get its members to voluntarily stop accepting fees.
In an interview with Insurance Times, the ex-justice secretary says that the ABI's position on the competition law question is “preposterous.”
“Nobody seriously thinks that the Office of Fair Trading is going to refer the insurers to the Competition Commission because they are ensuring that the law is applied.”
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