IIB claims FSA scheme would decimate profits

The Institute of Insurance Brokers (IIB) has criticised the Financial Services Authority's (FSA) proposal that the level of general insurance mediation compensation should be the same as protected contracts of insurance.

According to the IIB, an annual Financial Services Compensation Scheme (FSCS) levy of 1.5% on a general insurance broker's gross income would wipe out their net profit and force firms out of business.

Responding to FSA Consultation Paper 04/04, the IIB stated that when an auth