FSA plans insurance ban

The FSA is proposing banning firms from using insurance to cover the cost of paying regulatory fines imposed for misconduct. In Consultation Paper 191, published on 24 July, the regulator outlined amendments prohibiting every authorised firm and all members of Lloyd's from entering into any contract that would pay all or part of an FSA imposed financial penalty from 1 January 2004. Any such contract taken out on or before 24 July this year would remain valid. The FSA said this is necessary to protect people's rights under existing contracts and avoid creating a motivation to enter into ...