The Institute of Insurance Brokers (IIB) has criticised the FSA's proposed application fee thresholds.
In its response to CP187, Insurance Selling and Administration, the IIB said the first income threshold for broker application fees - £1m - was too high.
The IIB called for the first threshold to be set for small firms with incomes of up to £100,000 and that the minimum application fee should be £250 for early electronic submission.
Click here to read FSA Consultation Paper 187.
IIB Director General, Andrew Paddick said: "The last thing I want to see, is a large number of very small professional brokers, who serve their local communities well, being forced out of business as a result of direct and indirect regulatory costs they simply cannot afford to pay.
"It is essential that FSA fees are proportionate to the size of business concerned and to achieve this the FSA will need to ensure that it is a highly efficient cost-conscious regulatory operation. In my opinion the FSA should be answerable to a totally Independent Review Board which reports to HM Treasury with any proposals for direction/intervention regarding both fiscal and regulatory matters."
