Each week, as I read about regulation my heart sinks deeper. I have 50 years' experience in insurance and a small long-established broking business.
I now read that the FSA is to demand a further £50m from insurers in addition to £20m for the ombudsman scheme.
The regulation fees for brokers are said to be "appropriate", but can only be designed to eliminate all but the larger broking firms. These large firms are able to engage extra staff to interpret the rules (when finalised) and carry the staff each hour of the day along the right regulatory path.
A national newspaper recently reported that the FSA (which it terms the Fantastic Stationery Administration) has already issued some 23,000 pages of consultation/guidance in at least 200 documents, 55 of which run into more
I am told that FSA staff are highly paid - much above average insurance staff salaries. This cost is paid by brokers and insurers, but eventually by the policyholder.
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