ABI concerned about rushed regulations
Share
The Association of British Insurers has warned changes to the FSA’s powers on consumer redress in the Financial Services Bill should not be hurried through without consultation.
In its response to the Queen’s speech today, the ABI raised concerns about the Bill’s rules on bonuses.
Acting director general Maggie Craig says: “We understand the need to legislate on the agreements made at the G20 and EU. However, this Bill should not be a catch-all for the wrong type of regulation. We should be wary of the principle that the state should set an individual’s pay package, not the market.”
She adds: “The changes to the FSA’s powers on consumer redress are of profound importance, and we are alarmed this is being rushed through without proper consultation with industry. This is too important not to get right.
“We are also worried over moves to court- based collective redress. Pushing the UK toward a US litigation culture would create costs for consumers and businesses that far outweigh the benefits.
“We support today’s announcement to improve consumer knowledge of financial services. Insurers have long worked to develop the public’s financial education.”
On long-term care, the ABI called for a greater role for the insurance industry in Government plans.
Craig says: “It is regrettable that the Personal Care at Home Bill undermines the Government’s own Social Care Green Paper, published as recently as July. That Green Paper set out a range of funding options for both at-home and residential care, but today’s announcement seems to undermine the funding options set out in it.
“The insurance industry wants to be part of the solution and deliver the best and most cost-effective long-term care. But this needs clarity and certainty from the Government, which piecemeal polices do not provide.
“We urge the Government to ensure that any new proposals include insurance industry involvement particularly as the Government’s own Insurance Industry Working Group report recently advocated this sort of partnership.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (1)
The truth behind the ABI | 18 Nov 2009 5:29 pm
Shame the ABI worked so hard with the FSA to stitch up the IFA sector via RDR in an attempt to bin "independent" product choice in favour of RDR tied advisers selling ABI product providers poor quality products through tied advisers!
Unsuitable or offensive? Report this comment