A statement from the GISC has formalised concerns the practice of brokers obtaining kickbacks from insurers for placing business has been ongoing in the UK market.
The statement is reported in The Daily Telegraph, which writes it comes at a time when the GISC is preparing to hand over regulatory duties to the FSA by January.
"Chris Woodburn, GISC chief executive, said: 'We have had people coming to us to say they are unhappy. Concern has been expressed but nobody has been prepared to put their name to a specific complaint,'" the Telegraph reports.
"'I'm not really in favour of regulatory fishing expeditions. We are keeping a watching brief but obviously if we do receive a complaint, then we will act.'"
The FSA says it is “monitoring” the situation in New York, where Wall Street is scrambling for cover in this latest in a line of scandals sparked by investigations led by state attorney general Eliott Spitzer.
The FT says insurance brokers such as Marsh & McLennan, the biggest, may have to repay hundreds of millions of dollars in so-called “commissions” paid by insurers to ensure business was directed their way.
The investigations are also extending to reinsurance contracts and the policy of “tying”, whereby brokers require insurers buy reinsurance in exchange for getting better primary insurance contracts, the paper adds.
ADDITIONAL GOVERNMENT spending will be simply swallowed up by red tape and bureaucracy rather than producing better outcomes for taxpayers, the Public Accounts Committee is set to report today, the Telegraph writes.
An additional £61bn worth of spending announced by Gordon Brown in 2002 will go down the drain because of poorly formulated spending plans by departments in charge of health, education and transport, the report is expected to say.
FORMER SHELL CHAIRMAN Philip Watts’ appeal against a regulatory fine over his role in the oil reserves scandal should not be allowed the FSA has urged the Financial Services and Markets Tribunal.
The appeal rests on whether the FSA wrongly identified Watts in its report into the affair.
The FSA says there was no identity discrimination, but Watts argues the FSA broke its own rules and did ensure his name became public in relation to the investigations.IFAonline
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