CII opposes cutback in FSA regulation

The Chartered Insurance Institute has opposed the Financial Services Authority proposals to remove customer controlled functions from the regulatory regime. The CII emphasises the need to retain direct regulationof individuals dealing with customers. The FSA is arguing for the abolition of customer controlled functions where individuals are dealing with wholesale, i.e. non-private, customers.

The FSA also suggests such functions might be removed in the cases of individuals dealing with retail customers.

Sandy Scott, director general of the CII, says: “We believe a reduction in regulatory standards to achieve short-term cost savings is a false economy. The FSA should think again.”