FSA considers shifting balance of regulation

The Financial Services Authority is due to report back in full on its review of the general insurance rules during the first quarter of 2007 but at a recent evidence session with the Treasury Committee, the FSA gave away some important signs of what is to come.

Certain sectors of the general insurance industry are likely to be released from the full impact of the Financial Services & Markets Act when the regulator completes its review of the sector’s supervision in the first quarter of 2007. The Financial Services Authority (FSA), which began the review 18 months after the general insurance regime took effect, gave its strongest signal yet that it will reduce the current requirements on motor insurance, household insurance, and smaller insurance sectors such as pet, dental and optical insurance.