12th December 2006

Digest of BIBA Regulatory Working Party Meeting 6/12/2006 Conflicts of Interest We are expecting some output from the FSA shortly following their thematic work. DCA Regulation of Claims Management Services Regulation of referrals to either solicitors or accident management companies in the absence of a before-the-event legal expenses policy commences on 7 April 2007. Full details have been posted on the BIBA website. Contract Certainty London Market continues to meet agreed targets. Non-subscription market is now generating an increasing volume of data. The view is that we are likely to be able to demonstrate the FSA that the market solution is working and that regulatory intervention is not necessary. FSA ICOB Review BIBA will be meeting the FSA shortly where they will update us on their progress, as part of the post implementation review of General Insurance rules. FOS and FOS Funding Review We are expecting a decision on FOS funding early in the new year and are anticipating an increas in the £50 levy and also in the number of free cases. A consultation paper on the FSCS funding arrangements is expected in January 2007 and indications are that the outcome for members will be significantly better than proposed in FSA’s original preference (option B). Both funding models are expected to take effect from 1 April 2008. HM Treasury Select Committee Review This review was unexpectedly announced in November and allowed only a week to get a make a formal. BIBA’s response is available on the website. HM Treasury Review of Bundled Travel Exemption When HM Treasury (HMT) originally exempted the sale of bundled travel in 2002, they promised to review their decision in 5 years time. That review process has now started with the publication of a consultative document. BIBA will be responding and will call for the exemption to be lifted. Coordination with BIBA’s Regional Compliance Forums Members of the BIBA Regulatory Working Party who work outside of London are encouraged to make contact with their BIBA region to ensure that the lines of communication from the regions to the centre are joined up. Selection of Chairperson Jo hn Gorham was nominated by Simon Bolam and his selection was unopposed. Any other business Freight forwarders – we believe that HMT has not yet decided the mechanism by which the freight forwarders would be taken out of scope Industry guidance – the group shared the concern that BIBA should strike a balance between assisting members without being seen as either a quasi-regulator or an agent of the regulator. Possible Review of IMD – the group’s view was that whilst this was possible, the UK problem was HMT’s choice of the FSA as the competent authority – once this choice was made, we were always likely to end up with what we currently have. Turnover of FSA supervisors – several group members expressed concerns that there seems little continuity at firm supervisor level and examples were given of the regularity of change. Meeting dates for 2007 – March 15 th, June 14 th, September 13 th and December 12 th

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