The British Insurance Brokers’ Association (BIBA) and Institute of Insurance Brokers (IIB) are calling for the newly formed Finance Conduct Authority (FCA) to reassess its regulatory demands.

Responding to the Financial Services Authority’s (FSA) consultation on the FCA’s approach to regulation, the two bodies have highlighted concerns around the style and intensity of the current regime.

Their submission looks at the key areas of proportionality, transparency and rules, urging the authority to clarify and simplify the rules.

Both broker groups believe the guidelines need to take into account the needs and characteristics of insurance brokers, saying compliance is too complex and resource-intensive.

The report also says high fees and levies continue to threaten the viability of many UK broking firms.

BIBA CEO Eric Galbraith says the new regulator should be “more approachable, more knowledgeable about the markets and more sensitive to practical aspects of compliance”.

IIB CEO Barbara Bradshaw says the FCA must have sufficient expertise, understanding and flexibility to respond to the demands of supervising the wholesale and retail insurance broking communities.