RICS says no to regulation

The Royal Institute of Chartered Surveryors says it is vehemently opposed to plans to regulate the general insurance market and wants the FSA&#39s tanks off its lawn.

It says that further regulation of general insurance activity within property and construction would be, unnecessary, bad for business, expensive, anti-competitive and counter productive

In a letter to chancellor Gordon Brown, leading quantity surveryor Frank Gainsbury explains how such a move would adversely affect the construction industry.

The proposals to impose FSA Regulations across the entire insurance market, he claims, are a knee-jerk reaction demanding a &#39one size fits all&#39 solution in areas of the market where regulation is inappropriate or simply not needed.

Gainsbury says: “Construction related insurance is a complex, specialised subject requiring a full understanding of how the construction industry works and a detailed knowledge of the various standard forms of contract.

“Advice in this area is best provided by those who work on a day-to-day business with the organisations involved and who have the appropriate knowledge and training.

“Chartered surveyors and other professionals working within the construction industry will be faced with the prohibitive cost and additional time required to comply with the proposed FSA regulations.

“Such advisers will either simply opt out of providing such professional advice or alternatively pass the additional cost on to clients in the form of extra fees. The whole issue as it affects the construction industry is counter-productive.

“The very people the regulations are designed to protect will be denied the opportunity to obtain the best possible advice from those in a position to provide it or will have to pay more fees for the advice they get.”