Aon stresses to FSA that insurance brokers and bankers must be separated when it comes to funding the FSA
Aon has told the FSA that insurance brokers are excessively regulated and must be separated from the banking industry when it comes to working out how to fund the FSA.
The megabroker was responding to FSA chief executive Hector Sants's announcement that large firms should bear the brunt of funding the costs of the FSA.
Carol Richmond, chief risk officer for Aon, said the FSA should not only look at size, but also the risk a firm poses to the financial system.
Richmond said: "The nature of the risk posed by the firm must also be taken in to account. For example, the risks posed to consumers by brokers differs significantly to the risks posed by the banking industry.
“The FSA’s considerations need to go as far as thinking about needs to consider whether brokers should actually be considered ‘high impact’ firms. The burden of financing the regulatory regime needs to be borne by those firms that pose the greatest threat to the FSA’s objectives.
“Additionally, we welcome the findings by research conducted by BIBA, which we contributed to, that finds the level of regulation exceeds the limited risks posed by brokers.”
Aon was speaking following Biba research which showed the huge costs of regulation to brokers
