FSA chief rejects calls for tighter rein on insurers

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The Independent Online

John Tiner, the chief executive of the Financial Services Authority, yesterday dismissed calls to tighten the regulations governing insurers' disclosure of commissions, warning the industry that it was their responsibility, not the City watchdog's, to take responsibly for their conflicts of interest.

John Tiner, the chief executive of the Financial Services Authority, yesterday dismissed calls to tighten the regulations governing insurers' disclosure of commissions, warning the industry that it was their responsibility, not the City watchdog's, to take responsibly for their conflicts of interest.

His remarks came in response to calls for mandatory commission disclosure among underwriters and brokers, after the recent scandal uncovered by the US attorney-general, Eliot Spitzer.

Mr Spitzer's investigation into the main US insurance brokers unveiled fraud and widespread commission bias among the broking community.

Speaking at the FSA's first insurance sector conference, Mr Tiner said mandatory disclosure was not the answer. "The management of conflicts is not the responsibility of the regulator. Our responsibility is to set principles and assess compliance with our principles.

"We are doing that right now through our work on conflicts management and if we find serious breaches or ignorance of our requirements we will take appropriate action against the firms and individuals involved."

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