HL Deb 16 December 1986 vol 483 cc97-8
Lord Banks

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether it is their intention that, once the Financial Services Act 1986 is in operation, registered insurance brokers dealing in life assurance and pensions will have to register twice, once with the Insurance Brokers Registration Council, a statutory body, and once with the appropriate self-regulating organisation; and, if so, whether they will have to provide two sets of detailed documentation, comply with two sets of conditions and pay two fees.

Lord Beaverbrook

My Lords, yes. However, after strong representations from the council, the Financial Services Bill was amended to allow a role for the council for the regulation of life insurance brokers but with safeguards aimed at integrating so far as possible the requirements of the two regimes so as to minimise the burden of dual regulation.

Lord Banks

My Lords, I thank the noble Lord for that reply, and declare an interest as I am a registered insurance broker. Is he aware that many small intermediaries will cease to register with the Insurance Brokers Registration Council if they have to register with both bodies? Is that what the Government want? Is it possible for the terms of registration for the council to be such that acceptance by the self-regulating organisation is automatic?

Lord Beaverbrook

My Lords, on a number of occasions during the passage of the Financial Services Bill we felt that representations were made to us rather late in the day. The case put by the noble Lord today has been delayed. This question was considered at the time in both Houses of Parliament, and the Government's first response was to exclude the possibility of dual regulation by removing the scope of the IBRC for those who acted as intermediaries exclusively for life assurance. Following representations about that approach, the Bill was amended in the way that I have described. There has been a full airing of the issue, and a solution acceptable to both Houses was found.

Lord Banks

My Lords, is the noble Lord aware of the widespread concern that exists among small insurance intermediaries that a bureaucratic and financial burden is being placed upon them which many will find difficult to sustain? Is it correct, for example, that the annual subscription to FIMBRA, which is expected to be the self-regulating organisation for insurance intermediaries, is to go up to £900 next year, that there is a £350 entrance fee, and that VAT is payable in addition?

Lord Beaverbrook

My Lords, the whole question of the fees charged by regulatory bodies and the implication of those fees on entry into the business will doubtless be looked at closely by the Director General of Fair Trading when he scrutinises the regulatory system for anti-competitive effects. The Secretary of State, who has the task of balancing the needs of competition and of investor protection, will also consider that question carefully. In those circumstances, it would be wrong of me to comment upon particular fees.

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