Provincial uprising weathers kickback

The fact that some have felt it necessary to be critical of the brokers that used the trade press to broach a regulatory issue of great concern, illustrates the different forces bearing on the regulator as it attempts to set the guidelines for the industry.

Voicing concern that the Financial Services Authority gets the fine-tuning right over conflicts of interest is something that I think certainly merits using the press, despite criticism that this approach might upset the apple cart. Those nameless critics - it has to be said - have the luxury of scale and long-standing and, therefore, the regulator's attention and the power to effect change quietly.

But cautioning provincials to keep quiet about conflicts of interest - especially after they did not get their way with compulsory risk transfer - is not only unlikely to have the desired effect, it also does not address the real issue. The collective of brokers that spoke out did so, not only for personal gain, but to represent the dear old provincial brokers that feel they do not have the regulator's ear like the large nationals, corporates and other institutions have.

Furthermore, resorting to using the press as a conduit is a precedent the FSA set by publishing its 'dear CEO' letter in the national press in the first place.

Without exception, all those I have spoken to, who were of the opinion that matters would be better dealt with in a quieter way, have the sort of muscle and standing that the average provincial can only dream of. It will certainly be interesting to see how this plays out after a meeting, between those representing provincial concerns and the regulator, due to take place at the end of the month.

As I and others suspect, the bearing of Spitzer on the FSA cannot be ruled out in its actions. Perhaps now it has noisily gone about addressing Spitzer-type concerns for all, and especially its masters, to see - the issue of conflicts of interest will die down, particularly having taken on board the views of those representing provincials.

The FSA has not yet reneged on its stance as a 'listening regulator' and, as such, there is every hope that, whatever you may think of the tactics, those carrying the provincial torch will receive a welcome reception at Canary Wharf.