The trade body noted insurance brokers are facing 48-fold increases in their FSCS fees from two years ago
The Association said recent invoices from the FSA for 2010-11 fees and levies have highlighted the inequality of the current funding of the FSCS. It says it has been “inundated” with calls from members who are “incensed and ready for a fight”.
Eric Galbraith, chief executive of BIBA, said: “The increase in the FSCS levy on intermediaries is totally unjustified. It is not the failure of insurance brokers that is causing this massive increase in the cost of regulation.”
“The fault actually lies with the failure of firms whose core business is not insurance intermediation and with the FSA who have consistently failed to adequately police the sale of this product.
“The cost of the mis-selling of PPI is that insurance brokers are facing 48-fold increases in their FSCS fees from two years ago. This proves the structure of the compensation scheme is totally flawed.”
BIBA has published a regulatory briefing for members containing advice on how best to minimise the levy applying to brokers.
