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The Financial Services Compensation Scheme (FSCS) spent nearly £400m on management expenses in the 2010/11 year as it took in nearly £1bn in levies and paid out over £535m in compensation.
The British Insurance Brokers' Association (Biba) should be the trade body for all forms of intermediation and not limit itself to brokers according to its new chairman, Andy Homer.
Brokers have been warned to ensure that proper internal controls are in place to tackle a rise in simple but potentially business-threatening fraud.