The Financial Conduct Authority is facing calls from the insurance industry for greater reassurance on the implementation of the Senior Managers & Certification Regime.
The British Insurance Brokers' Association (Biba) asked to work closely with the FCA to support a proportionate roll-out of the SM&CR regime to insurance brokers.
At the launch of its 2019 manifesto in the Houses of Parliament yesterday (January 15), the body acknowledged the regulator had already produced "helpful" guidance for firms looking to implement the legislation, but claimed brokers would welcome greater reassurance of proportionality from the FCA.
Biba also called for a "period of stability" in the industry, asking for a pause on the "continual influx of new regulation" to allow firms to embed current rules before creating more.
Steve White, chief executive of Biba, said: "These are the sorts of challenging times when the importance of insurance is at its highest.
"Insurance brokers can help clients take up opportunities by the provision of suitable insurance, but they sometimes find their time divided between helping clients and managing their regulatory obligations."
Mr White said since its inception in 2013 the FCA has issued 145 consultation and discussion papers, calls for evidence and thematic reviews which had taken insurance brokers’ focus away from helping individual and business customers.
He added: "We ask for a period of stability allowing time to embed current requirements before introducing new ones."
Biba pointed to figures from 2005, at the beginning of mandatory regulation for insurance brokers, which showed there were more than 8,000 registered brokers in the industry.
The group compared this to the latest figures from the FCA in June last year, which showed the number of brokers had reduced to below 5,000.
Biba claimed the "burden of ever-changing regulation" was driving firms out of the market and affecting competition and productivity in the UK insurance market, which it said was a low risk sector.
Laura High, director of Yutree Insurance, said: "Regulation can create a long term challenge to increasing productivity in the UK broker market.
"My company has had to act on numerous new pieces of regulation which often feel as though they are not actually improving outcomes for our customers.
"Getting to grips with constantly changing regulations takes an inordinate amount of time, slows us down and takes our focus away from helping our clients."
rachel.addison@ft.com
