Conference News: Insurers urge government to adopt EU directive

Industry leaders at the CII Conference have called for the European Parliament to adopt the draft Directive on intermediation and so end uncertainty for insurers and brokers.

It is understood that the parliament was due to adopt the long-awaited directive yesterday, sparking the publication of Treasury and FSA consultation documents that will help shape future regulations.

The consultation documents would be expected to be released within weeks of the adoption.

However, confusion reigned among FSA and Treasury officials over whether the adoption had actually taken place.

GISC chief executive Chris Woodburn said the parliament had been due to adopt the Directive last July. "It didn't happen for a number of reasons, like they went on holiday and that there is a real difficulty in translation," he said.

"It doesn't sound like much, but it needs to be put into a precise form in at least 14 different languages."

Woodburn said it was imperative the Directive was adopted "sooner rather than later".

"This period of uncertainty had gone on too long," he warned. The industry wants to know, so it can plan with greater confidence and enthusiasm."

However, the FSA said it did not know that approval of the Directive was imminent.

"As far as we know it's still on its second reading in the parliament," an FSA spokesman said.

A Treasury spokesman said adoption was planned in the next few weeks.