John Greenway MP says the announcement of broker regulation represents new thinking by ministers.

"There is no suggestion that self regulation of general insurance has failed. However, bringing mortgage advice under FSA competence has become increasingly inevitable.

"It makes sense to extend FSA supervision to general insurance to avoid duplication of intermediary regulation and to provide a one-stop shop for consumer complaints.

"As many professional insurance brokers are already FSA-authorised for life insurance and pensions, there should be cost advantages from a single regulator, provided the style of regulation is appropriate.

"It will be important to ensure that general insurance compensation is kept separate from compensating for bad investment advice.

"The suggestion that FSA regulation is essential to comply with the EU Insurance Intermediaries Directive is not new."