Freight companies have given their full support to the government's decision to
Freight companies have welcomed the government's decision to remove freight forwarders from the scope of FSA regulations covering marine or cargo insurance.
Independent Freight Forwarder Davies Turner fully backed the move. Joint managing director, Philip Stephensonsaid: “We welcome the news that freight and logistics companies will no longer need authorisation from the Financial Services Authority to offer such insurance direct to customers.
“Anyone in the international trading environment who has followed the issue before and after 14 January 2005 will know that individual companies and trade or freight associations such as BIFA have lobbied long and hard to amend or simplify the implementation of the Insurance Mediation Directive. From the outset, Davies Turner shared the view that additional regulation was unnecessary as there weren't any significant consumer protection issues, and our industry should compete on a level playing field along with the rest of Europe.
“We were one of the first UK freight forwarders to register with the Financial Services Authority (FSA) before the new Insurance Mediation Directive (IMD) took effect on January 14th last year and have therefore been able to continue providing marine insurance cover for our customers.
“But the FSA registration process was not a simple one and significant costs have been involved, both in support of registration and its continued maintenance, including staff training.
“So we welcome the news that later this year there will be a short consultation paper on the change, along with draft secondary legislation that we hope will become law as soon as possible.”
