FSA decision draws near

The regulator will make a decision on contract certainty in Q1 2006 but will use existing powers to target under-performing individual firms

The Financial Services Authority (FSA) has developed options for regulatory intervention if the London insurance market fails to convince it of sufficient progress in achieving contract certainty. True to its word the FSA told the market’s representatives that it was ready to enforce new regulations if the market’s solution failed to impress. In the meantime, the FSA said it would use “existing tools where necessary” to focus on individual firms or sectors that are making insufficient progress in improving contract certainty.