An open letter to Gordon Brown

Rt Hon. Gordon Brown, MP, Chancellor of the Exchequer, HM Treasury

Dear Chancellor

With regard to the implementation of the Insurance Mediation Directive, I am writing to you to express my deep concern at the likely impact of the UK's approach to implementing one aspect of the Directive.

I am very concerned at the impact that the Financial Services Authority's approach will have both on our members and on consumers and business users of their services.

A great amount of regulation, which will be both costly and cumbersome to implement, is being applied to tackle what appears to us to be a largely non-existent problem.

We do not consider that there is any significant problem in the UK relating to the operation of insurance in the property and construction spheres.

We do not understand why the UK government has decided to go far beyond what was strictly necessary and to apply this directive in ways that other countries do not appear to feel necessary. The result is likely to be a withdrawal of smaller firms from areas such as property management, something that is presumably not the government's objective.

It would be unfortunate if we fail to consider all aspects of consumer and public benefit and detriment in this area without taking account of the current real position and applying the government's own policy on impact assessment and consideration of small businesses. Even at this late stage, the Royal Institution of Chartered Surveyors would urge you to withdraw the provisions of the new regulatory regime as they relate to property and construction and consult about a more practical and sensible way forward.

We would greatly welcome a meeting to discuss our concerns with you in greater detail.

Nicholas Brooke, President, Royal Institution of Chartered Surveyors.