News...
Andrew Holman,
Chief Executive of John Holman & Sons
How effective the FSA’s regulation is, is the big question that everyone is asking. It is a major achievement to introduce the regulation that they have, but how well it does remains to be seen.
Clients simply don’t see the benefits of the FSA’s regulation and to be honest, they don’t really understand what the FSA is all about.
Regulation has cost a lot of money for clients, intermediaries and insurers and in my opinion it is in danger of becoming a stifling innovation.
To make the regulation more effective, the FSA perhaps needs to police what they have introduced because the worry is that the industry will be in danger of falling into a two tier system rather like the EU, where the British institution plays by the rules but everyone else ignores them.
The danger is that some firms will apply the rules but those that ignore them will go unpunished. That is a huge concern for those that have spent large amounts of time and money on being compliant.
May 2006 - Insurance Times
