Editor's comment: Regulator change risks instability
The announcement that the Financial Services Authority is to be disbanded and replaced with a combination of regulation from the Bank of England including a new Consumer Protection and Markets Authority brings opportunities and dangers.
The system is at last something close to functional for brokers, so anything too radical will cause another round of costs and pain. There are still significant flaws, such as Financial Services Compensation Services fees rising 700% for every broker despite no general insurance firm going under due to payment protection insurance mis-selling.
The FSA has set about a full review of the funding process and the British Insurance Brokers' Association is pushing for the 13,500 band of intermediaries
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