There has been much debate about the FSA's minimum requirements in respect of a broker's net assets.
Our view at Camberford Law is that we believe these requirements are essential in today's and tomorrow's markets as there are many eventualities nowadays that can have a negative effect on trading and which aren't covered by professional indemnity insurance.
At Camberford Law we hold the underwriter's pen on many schemes and part of our business comes through sub-agents.
For a broker our size, we always have had high net assets, but during our financial year 2002/2003 we increased our net assets from £1,858,895 to £2,233,650.
We call this - to coin a government expression - our war-chest. This further increased our financial strength making us one of the most financially secure brokers in the UK.
Financial strength is crucial in any industry but particularly so in the insurance business.
Clients', insurers' and the brokers' staff must have confidence that the broking firm can cope with ups and the downs of the marketplace.
Just think back to the demise of Independent Insurance when some brokers took the responsibility of paying the premiums themselves - the right and proper thing to do.
Could something like that happen again?
Richard Sheikh
Chairman & chief executive
Camberford Law
Letters intended for publication should be sent to: The editor, Insurance Times, 30 Cannon Street, London EC4M 6YJ, faxed to 020 7618 3499, or emailed to
letters@instimes.co.uk .
