The GISC has confirmed its role as the regulator for the general insurance industry, until industry regulation eventually passes to the FSA.
The General Insurance Standards Council (GISC) has confirmed its role as the regulator for the general insurance industry, until industry regulation eventually passes to the Financial Services Authority (FSA).
This follows the Treasury's announcement on Wednesday that the FSA is to become the general insurance industry's regulator within the next two years.
The GISC, an independent organisation, also said that it would not proceed with its application to the Office of Fair Trading for an exemption to cover Rule F.42 under the Competition Act.
The Council had wanted to gain approval for a mechanism that would force GISC members to deal only with intermediaries who were also regulated by GISC.
It had said this would protect consumers throughout the supply chain. Since statutory regulation will, by its nature, achieve this objective, there is now no requirement for Rule F.42.
The GISC has also scrapped plans to announce nominations and elections to its Board for 2002. It said this was no longer appropriate because since the Board's responsibilities would eventually transfer to the FSA.
GISC chairman Anthony Howland Jackson said: "The Board is determined that GISC focuses its efforts on continuing the development of an effective regulatory regime to provide consumer protection in this interim period, which we understand will be a minimum of two years.
"These are sensible and practical decisions that demonstrate the Board's commitment to use our resources to the maximum benefit of our members, their customers and the industry as a whole.
"It is particularly important that we ensure that our members are in the best possible position to apply for authorisation under the FSA."
