BIBA Alarmed by FSA Fee and Levy Proposals

BIBA Alarmed by FSA Fee and Levy Proposals

The British Insurance Brokers’ Association (BIBA) has voiced its concerns over the proposals contained in the FSA’s Consultation Paper CP09/7.

Eric Galbraith, BIBA’s Chief Executive said: “Whilst we appreciate that the FSA has an ever-growing workload and that the fees for 10,000 small firms have been frozen, we are alarmed that medium and larger insurance intermediary firms are facing a year on year increase on their regulatory fees and levies of between 30 to 70%.”

Eric Galbraith added: “Insurance intermediaries are recognised as one of the very lowest risk groups to the regulator’s statutory objectives and yet are facing huge percentage year on year increases for the levies they pay to both the Financial Ombudsman Service and the Financial Services Compensation Scheme. This is patently unfair and puts insurance intermediaries in the UK at a significant competitive disadvantage to their peers elsewhere in Europe.”

Eric Galbraith concluded: “These fee and levy proposals add a significant burden at a very difficult time in the economic cycle and we want to see the FSA give a much more detailed justification for these increases.”

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Notes to editors

1. For further information please contact :

BIBA press office:
Leighann Burtrand, Communications Manager
020 7397 0223
burtrandl@biba.org.uk

2. About British Insurance Brokers’ Association

The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance organisation representing the interests of insurance brokers, intermediaries and their customers.

BIBA represents 2,400 insurance brokers and intermediaries, including 1,700 FSA authorised firms. Insurance brokers and intermediaries distribute nearly two-thirds of all UK general insurance. In 2007, insurance brokers and intermediaries generated £1.5 billion of invisible earnings and they introduce £22 billion of premium income into London’s insurance market each year.

BIBA is the voice of the industry, advising members, the regulators, the Government, consumer bodies and other stakeholders on key insurance issues. BIBA provides unique schemes and facilities, technical advice, guidance on regulation and business support and is helping to raise, and maintain, industry standards. BIBA works closely with the Chartered Insurance Institute to provide training to those working in the industry and actively participates in helping the industry and its customers deal with some of the major issues of the day.

BIBA members provide professional advice to businesses and consumers, playing a key role in identification, measurement, management, control and transfer of risk. They negotiate appropriate insurance protection tailored to individual needs and operate to a very high standard of customer service with the aim of ensuring peace of mind, security, financial protection and the professional advice required.

To find your nearest BIBA broker visit the ‘Find A Broker’ section of the BIBA website, www.biba.org.uk or call BIBA’s consumer helpline on 0870 95

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