Industry regulator, the Financial Services Authority (FSA), is to conduct a review in April 2006 into the effectiveness of the general insurance regulatory regime. The focus will be on Retail Conduct of Business requirements and how successful general insurance regulation has been. As part of the review, the FSA is looking for feedback from the industry on which areas could be approved. Consumer research will also be used to show whether the intended benefits of the regime are starting to emerge and whether consumers are making use of the information provided. Checks will also be made to find out whether the industry is complying with the regime.
Our view:
General Insurance brokers get away with it lightly compared to what we, as investment advisers, have to deal with from the regulator.