Brokers bodies worked together on industry guidance
The Institute of Insurance Brokers (IIB) has welcomed the Financial Services Authority’s (FSA) decision to allow the industry solution to commission disclosure to run until 2011.
The IIB said it provided a breathing space for brokers and their representatives to fully address the regulatory concerns.
Barbara Bradshaw, IIB chief executive said, “I am pleased that the FSA has taken on board many of the arguments against mandatory disclosure. This issue has been hanging over brokers like the sword of Damocles for two years but the statement now clarifies what the regulator wants to achieve without imposing new rules. There has to be an improvement in the way some intermediaries refer to their remuneration, the scope of services they provide and the capacity in which they act.”
The IIB said it had has worked with its rival the British Insurance Brokers’ Association to develop the industry guidance.
“We have an important role in disseminating the guidance once it is finalised but, more importantly, the IIB will give members ongoing support with good practice. Implementation of the guidance is the key to avoiding regulatory intervention in the future,” Bradshaw said.