Biba takes insurers' side over safety-net

A split has emerged between brokers over the Financial Services Authority (FSA)'s plans to formalise the voluntary agreements under which insurers pick up the pieces after brokers go bust.

Mike Williams, the outgoing chief executive of Biba, has appealed to MPs, warning of the "huge implications" involved in compulsory risk transfer of client money to insurers, as outlined in the FSA's Consultation Paper 174 and favoured by big-hitting brokers such as Smart & Cook, Layton Blackham and The Bro