FCA required to report on impact of regulation after BIBA lobby

"Proportionate and appropriate regulation is key to customer confidence but when setting their requirements the regulator must be mindful of the impact of their actions."

The FCA is now included on the list of regulators set to operate under the provisions of the government's Small Business Enterprise & Employment Act 2015 which aims to reduce barriers that small business may face in the drive to innovate, grow and compete.

The Act requires that the regulators listed produce a performance report annually outlining the effects on business of their qualifying regulation provisions. The first report is due on 9 June 2017.

BIBA lobbied and met with the Secretary of State for Business in order to see the FCA included in the list; something the association called for in its 2016 Manifesto and EU Exit Manifesto for 2017.

Graeme Trudgill, BIBA Executive Director, said: “We have long said that the amount of regulation applying in our sector is disproportionate compared to the low risk presented by insurance brokers. Proportionate and appropriate regulation is key to customer confidence but when setting their requirements the regulator must be mindful of the impact of their actions. It is excellent news that this regulatory requirement now applies to the FCA.”

Steve White, BIBA CEO, added: “In 2016 we supported Government’s ‘Red-Tape Challenge’ and called for the FCA to be included in the deregulation targets, and in 2017 we asked that regulators be mindful of the insurance market’s international competitiveness. This is a big win for our members and we hope it will lead to a more attractive and successful UK insurance industry after we leave the EU.”