As predicted in Insurance Times, the government stepped in today and passed the regulatory responsibility of general insurance broking to the Financial Services Authority (FSA).
The FSA will also t ...
As predicted in Insurance Times, the government stepped in today and passed the regulatory responsibility of general insurance broking to the Financial Services Authority (FSA).
The FSA will also take control of mortgage advice, streamlining the regulatory regime across the financial services sector.
Ruth Kelly, Economic Secretary for the Treasury, said this move would be beneficial to the consumer and business.
Howard Davies, chairman of the FSA, said: "We recognise the merits of bringing both mortgage and general insurance brokers within the FSA's scope, providing a single regulator for such firms and greater protection for consumers. Smaller firms, in particular, have told us that the current mix of statutory and non-statutory regulation imposes extra costs and burdens them. The requirements of the new regimes must be proportionate to the risks faced by consumers and ensure that the benefits of competition and innovation are retained."
