Fears were raised this week that tyro regulator FCA is running wild and needs to be stopped before it’s too late.
With the authority recently announcing emetic reviews into coverholders and the “cultural risks” they pose (Q2 to Q4), premium finance and, presumably, the evils of moneylending in general (Q3, done and dusted), commercial claims (Q3 to… whenever) and client money (ditto), at least one commentator has suggested that – if someone doesn’t muzzle it (and maybe take its danglers off) – the mad-dog watchdog will put the entire insurance industry out of business within five years.
“The FCA is out of control,” agreed Anthony Hall commenting on a story in Insurance Times this week, suggesting that “this monumental monolith” must be stopped before it can follow through on its crazed obsession with “destroying the industry”.
With all those dramatic reviews to carry out, it’s hardly surprisingly the FCA needs more money. Amazingly, despite the extremely tough stance taken by top retro fashion executive Steve “Walter” White and his mates at BIBA, brokers will be asked to fork out an additional £141.5m next year for the privilege of mad-dog regulation and insurers a Wapping £62.4m extra.
“Effectively the whole thing is a protection racket”, claims Jeremy Jesmoor of UInsUR Associates. “If anyone makes a fuss, they just leak that they’re coming after you and you’re screwed. Just look what they’ve done to big insurers over pensions and that. The Government can’t control them, and they can’t get rid of them either so soon after FSA. The whole thing’s a mess.”
Will no one rid us of this turbulent regulatory authority?
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