BIBA: FSA fee structure is "inequitable"

The British Insurance Brokers’ Association (BIBA) has responded to the Financial Services Authority (FSA) consultation paper on its proposed fees and levies for 2090-10 by demanding change.

In a written response to the FSA, BIBA chief executive Eric Galbraith described the current structure as “inequitable”.

Citing the variety of firms that currently comprise the General Insurance Mediation (A19) fee block, Galbraith stated:

“Each of these business types represents a different risk to FSA’s statutory objectives and demands a different degree of supervisory oversight.

“It is our firm view that the current fee structure is inequitable and we strongly suggest that steps are taken to more accurately align risk, supervisory oversight and fee payment.”