When brokers go bust, who carries the can?

Six Power Hour panellists discuss transfer of risk legislation and who has the duty of care in the event of a failure

Who should pick up the tab when brokers fail?

MS: I think the two main reasons why brokers fail is dishonesty or mismanagement.

Brokers should only fail, therefore, if their risk is badly or not continually assessed or the regulatory authorities have failed to spot mismanagement.

Who should be responsible? The credit givers, the insurers or the regulator.

Why should I pay for it?

LH: I think also the finance providers.

MS: You mean the people who finance the premiums? But that is not the

brokers'