As reported previously, (see: FSA Launches Discussion Paper on Increasing Transparency) the FSA published a DP in May 2008 which considered the creation of a framework for determining the information the FSA might publish about particular firms and industry sectors in order to aid transparency. The FSA emphasised the importance of transparency and the advantages that transparency can bring about.
In response to the DP, BIBA’s Chief Executive, Eric Galbraith, has suggested that greater transparency for commercial customers can be achieved by the market itself rather than through further regulatory intervention. BIBA has suggested that there is no evidence that the current regime affords commercial customers inadequate protection or that commercial customers want change.
BIBA’s Head of Compliance, Steve White, has also stated that BIBA members have reported that they would prefer to develop a market solution in preference to regulatory intervention.
Further concerns reported by the Institute of Insurance Brokers (IIB) on the DP can be read in our previous blog post (See: IIB Sees Demise of Small Brokers if Commission Disclosure becomes Mandatory).
Responses to the DP can still be submitted. The deadline is 29 August 2008.
Comments can be submitted using the electronic response form below.