Former IBRC councillor Simon Bolam, owner of Edinburgh broker EH Ranson, has criticised brokers for not exposing sooner unauthorised underwriting agency Tribune Risk and Insurance Services.
"Under the current rules you have to identify who your insurer is. If the documentation is not coming through I would have thought the brokers would have quickly realised something was wrong.
"It is possible that a few would slip through the net but not 40,000.
"I think it is shocking that this has happened and it strengthens the case for statutory regulation.
The Eskbank, Lothian based company began operating in 2000.
