'Overall cost of regulation is totally disproportionate'

Biba has responded to the publication of the FSA's consultation paper CP10/05 on its fees and levies.

Biba chief executive Eric Galbraith said: “The overall cost of regulation is totally disproportionate in relation to the low risk posed by our members’ regulated activities, but Biba welcomes the FSA’s desire to introduce a fairer and more transparent basis upon which regulated fees are levied to individual firms.

“BIBA, however, is still seeking far greater transparency around ‘value for money’ from the regulator.

“The concept that, as far as is reasonably possible, the fee should reflect the true cost of regulating each firm is correct and deserves support.

"However, the proposal to increase the minimum fee from £450 to a £1,000 is overwhelmingly rejected on the basis that the FSA’s fees and levies are vastly more than they should be for regulating general insurance brokers, particularly when compared to the rest of the EU.”