I refer to the article "FSA costs to shut 25% of brokers" (24 October, Insurance Times) quoting "compliance expert" Gary Dixon of PYV Corporate Resourcing.

Dixon based his calculations on the assumption that each broker would have costs of compliance of £27,500 for the employment of a compliance officer.

Clearly Dixon lives in a different world to most small brokers.

If we run a marketing campaign we do not include a cost of £35,000 to employ a sales and marketing officer; to deal with our staff we don't employ a £20,000 personnel officer and to clean dog's mess off the steps we don't employ a £10,000 street cleaner.

We are already expending money, management and staff time on GISC compliance, training and sitting CII exams.

John Tiner made it clear at the recent CII conference in Birmingham that the structure of the new regime is yet to be determined, that the FSA wishes to keep a competitive marketplace in the interests of consumers and that he appreciated that they have up to 50,000 individuals and firms to potentially authorise.

So does Dixon know something about the real meat of future regulation that is being kept from the rest of us? Does he have moles in the Treasury and the FSA?

Or is he perhaps not quite the "expert" that you present him to be?

Adrian Sutton
Douglas Insurance

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