The Treasury's overhaul of financial services regulation took another step forward this week afte...
The Treasury's overhaul of financial services regulation took another step forward this week after it confirmed the dissolution of the Insurance Brokers Registration Council (IBRC), the body previously responsible for insurance brokers professional standards.
The general insurance broking industry will now be regulated by the General Insurance Standards Council (GISC), with effect from September 2001.
The GISC, unlike its predecessor, is open to all insurance intermediaries and will set its own standards of business practices.
Economic Secretary to the Treasury, Melanie Johnson said: "Brokers of general insurance will now be able to operate free of the red tape they were previously burdened with."
The change relates to general insurance only, such as home and travel insurance rather than long-term investment-based insurance, like life assurance.
As a result of the change, insurance brokers will no longer be exempt from the Estate Agency Act 1979 which regulates the activities of estate agents in the buying and selling of property.
However, the issue over who will regulate the sale of products such as long-term assurance has yet to be resolved.
Industry officials are recommending the FSA regulate sale and advice on long-term products such as life and term assurance, because they relate to long-term investment products.
The Treasury will now take over the assets and liabilities of the IBRC.
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