FSA not to blame for consolidation

Regulation by the Financial Services Authority will not cause widespread broker consolidation, said Sarah Wilson, director of high-street firms at the FSA.

Wilson said: "It has never been our ambition to reduce consumers' access to insurance. Though regulation will undoubtedly play a part in consolidation in the market during the next couple of years, to put all consolidation down to regulation is to misunderstand."

Wilson said the publication of near final rules on prudential requirements in September meant brokers now have all the information they need to start getting ready for regulation.

She said: "We will polish the rules but I don't want there to be lots more changes. We think we have got the balance right and that our regime should be of substantial benefit to the consumer."