UK broker groups outraged at rising cost of regulation
The UK regulator’s latest fee proposal is unacceptable and forces the insurance industry to shoulder the burden of the failed banking sector, according to UK insurance broker groups.
The Financial Services Authority (FSA) has released a consultation paper in which it outlines regulatory fees and levies for 2009/10. It’s proposing fee hikes of up to 29% for some brokers.
The FSA has also upped compulsory contributions to the Financial Services Compensation Scheme, a statutory fund of last resort, and the Financial Ombudsman Service.
Institute of Insurance Brokers CEO Barbara Bradshaw last week blasted the UK regulator.
“The regulator has demonstrated its total inability to manage the banks and appears to be seeking to redress the balance by making insurance brokers pay,” she said.
Ms Bradshaw said the “massive hike” in cost was due “to failures in the wholly unconnected banking sector”.
British Insurance Brokers’ Association CEO Eric Galbraith also flagged his concern at rising fees. “This is patently unfair and puts insurance intermediaries in the UK at a significant competitive disadvantage to their peers elsewhere in Europe,” he said.
The Financial Services Authority (FSA) has released a consultation paper in which it outlines regulatory fees and levies for 2009/10. It’s proposing fee hikes of up to 29% for some brokers.
The FSA has also upped compulsory contributions to the Financial Services Compensation Scheme, a statutory fund of last resort, and the Financial Ombudsman Service.
Institute of Insurance Brokers CEO Barbara Bradshaw last week blasted the UK regulator.
“The regulator has demonstrated its total inability to manage the banks and appears to be seeking to redress the balance by making insurance brokers pay,” she said.
Ms Bradshaw said the “massive hike” in cost was due “to failures in the wholly unconnected banking sector”.
British Insurance Brokers’ Association CEO Eric Galbraith also flagged his concern at rising fees. “This is patently unfair and puts insurance intermediaries in the UK at a significant competitive disadvantage to their peers elsewhere in Europe,” he said.