FSA statement on transparency and conflicts of interest
The Financial Services Authority (FSA) has issued a statement on transparency, disclosure and conflicts of interest in the commercial insurance market, in which it accepts that the industry should develop its own guidance to bring about improvements.
According to the regulator, evidence from recent work suggests that although intermediaries are largely managing conflicts of interest appropriately, more should be done to improve transparency of their remuneration, services and capacity.
Discussions have taken place between the FSA and the Association of British Insurers (ABI), the London Market Insurance Brokers’ Committee and the British Insurance Brokers’ Association.
All these bodies now committed to developing industry guidance and promoting it amongst intermediaries.
However, they only have until 2010 / 2011 to prove that an industry-led solution can work, as issues of transparency will then be reassessed by the FSA.
As part of the process, the ABI and other organisations will be submitting examples of the guidance under development to the FSA, for discussion and endorsement.
Category: ABI News, Financial Services Authority News, Insurance News
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