Biba welcomes FSA's disclosure outcome

See also: FSA accepts industry solution on disclosure

The British Insurance Brokers’ Association (BIBA) has welcomed the Financial Service Authority’s (FSA) decision not to mandate the disclosure of commission in the commercial insurance sector.

Eric Galbraith, BIBA’s chief executive, said: “We are pleased that after an inordinate amount of effort by the Association, the regulator has agreed that the industry solution we have designed is the most appropriate method of achieving their desired outcomes for commercial customers.”

Galbraith added: “Following on from the success of the industry solution on contract certainty, our sector has once again demonstrated that we can work together to resolve issues, rather than rely on regulatory intervention.”

Steve White, BIBA’s head of compliance and training, said: “We have worked closely with our London Market Brokers’ Committee (LMBC), the ABI and IIB to arrive at a solution which achieves the FSA’s goals in an appropriate and proportionate manner. We have involved members from all corners of the UK and BIBA’s regulatory working party to ensure that the solution was workable and thanks goes to all those who contributed.”

White added: “The final touches are being made to the solution, with the aim of achieving Industry Guidance status. The FSA is giving our sector a final chance to show that their concerns can be addressed without the need for mandatory disclosure. Once the Industry Guidance is published, we will be working hard to ensure our members are aware of its detail.”