' charged to customers then you have to assume that they are equally as cavalier or poorly informed about the remainder of the FSA rules."

Steve White, Biba regulation and compliance manager, said: "It makes the point that firms are still getting up to speed with what the rules mean and the circumstances in which they work."

But Mark Coffer said that the FSA should concentrate on other areas, such as the stability of insurance institutions, "rather than chasing rogue issues in the market".