The Institute of Insurance Brokers (IIB) has slammed the UK Financial Services Authority's (FSA) proposed changes to disclosure requirements.

The IIB says the proposal to make disclosure of fees and charges optional for retail customers is a bizarre suggestion and contrary to well-established market practices.

It says the regime for retail customers would be completely at odds with the proposed treatment of commercial customers.

The FSA released a consultation paper in June this year detailing proposed changes to insurance conduct of business (ICOB) regulation as part of the move towards principles-based regulation.

The IIB is also critical of the FSA's proposals on private medical insurance, demands and needs statements, suitability and eligibility rules, and status disclosure.

ICOB rules represent the FSA interpretation of the Insurance Mediation Directive from the European Union setting out the business processes relating to the selling of insurance products.