The UK Financial Services Authority (FSA) move towards principles-based regulation is unnerving intermediaries, with the British Insurance Brokers' Association (BIBA) baulking at changes it labels "extraordinary".

Under broader moves to unwind regulation of the financial services market, the FSA is proposing to trim regulations on "low-risk" insurance products, where the regulatory burden is seen to be greater than the risk of customers being disadvantaged.

Under FSA proposals announced in June, brokers selling low-risk products no longer need to list premiums and broker fees as separate items.

BIBA Compliance Chief Steve White agrees with the principles-based approach but says it must still provide a basic level of consumer protection.

"The removal of the need to separate a fee from the premium when selling a lower-risk product to a consumer is an extraordinary proposal, particularly given the FSA's scrutiny of commission disclosure in the commercial market at the moment," Mr White said.

"We are also concerned about the proposed classification of private medical insurance as a low-risk product, the deletion of the inducements rule, the removal of the requirement to provide a policy summary, the removal of demands and needs statements for insurers, and the presentation of the rules themselves."

The new rules are due to come into force in January.