Brent North MP Barry Gardiner confirmed that he has asked for an external enquiry into the Financial Services Authority's (FSA) failure to prevent the collapse of Independent Insurance, at a briefing of over 150 brokers held by Insurance Times today.
He has also pledged his support for Insurance Times' Regulation Overhaul Campaign.
Gardiner has asked the Lord Chancellor to impose a duty of care from auditors of insurance companies to the FSA, making them liable for negligence and has requested enquiries by the Treasury Select Committee and the Public Accounts Committee.
In a letter to the Treasury Select Committee, Gardiner referred to the lack of action by the FSA prior to the collapse of both Independent and Equitable Life.
It said: “Many questions have been raised about the role of the FSA in the collapse of both these companies and whether the regulator could have and should have taken action earlier.”
He added that the chairman of the Public Accounts Committee had “met happily” a request that the FSA should be audited.
The National Audit Office has been asked to investigate whether the FSA provides value for money.
“There are more ways to call for an enquiry than to ask the government for it,” he said.
Gardiner welcomed a statement from FSA chairman Howard Davies at the FSA's annual meeting yesterday that there is the need for change in the regulatory regime surrounding insurance companies.
