The British Insurance Brokers’ Association (BIBA) has presented its Financial Services Compensation Scheme (FSCS) petition of nearly 7000 member signatures to Jonathan Evans MP at the House of Commons. BIBA’s petition calls for the House of Commons to urge HM Treasury to accelerate the FSA’s review of the FSCS consultation with immediate effect.
Jonathan Evans MP, Chair of the All Party Parliamentary Group on Insurance and Financial Services, is supporting BIBA’s petition and will formally present it to the chamber of the House of Commons tonight. Jonathan has also agreed to apply for an adjournment debate on the subject within the House of Commons as an additional call for action on the unfairness of the current funding model.
Eric Galbraith, BIBA Chief Executive, said: “We are overwhelmed with the response to our petition, it adds weight to our campaign and sends a really strong message from brokers on how big an issue the FSCS is. With this year’s increasing levies landing on brokers’ desks shortly, it drives home the importance of achieving separation for brokers in the FSCS funding model, and once Jonathan presents the petition it will provide another official call to Government to take action.”
Jonathan Evans MP, commented: “The FSCS is clearly in need of reform. The number of signatures on this petition shows the depth of concern among brokers, who are already making significant contributions. The FSCS should do more to recognise this and if liability exists in the system then we need to direct the cost to where it is created.”
The FSA announced in November 2009 that a review of the FSCS would be carried out but this was delayed in November 2010 due to European proposals and changes to the regulatory landscape which the FSA said may have potential consequences for the structure and funding of the FSCS. BIBA is demanding for the review to be completed by April 2012, in time to avoid further increases in levies for brokers next year.
Steve White, BIBA Head of Compliance and Training, added: “We are doing all that we can to apply political pressure to avoid any further delay to the consultation. Our petition is just one way that we are getting our members’ voices heard. We have also been working with MPs who are tabling questions in the House of Commons on the subject and if Jonathan achieves an adjournment debate it will really help to raise the temperature of the issue.”
Galbraith concluded: “We totally agree with the principle of compensation but the current structure of the FSCS is fundamentally flawed.”
Source : BIBA