FSA backed as claims regulator

19/01/2006

It now appears the CSC may not be given the green light to become regulator of claims management companies, after peers expressed concerns about conflicts of interest. While the government has stated that it will keep “an open mind” on the regulator’s possible identity, Post Magazine understands Westminster will force the FSA to step in.

Baroness Ashton of Upholland said, at a Grand Committee meeting on the Compensation Bill on Monday: “I have not ruled out the FSA. We have talked to the appropriate potential regulators. At this stage, I have a completely open mind.”

However, Lord Hunt of Wirral told PM he preferred the “FSA model”, describing its approach as one of “individuality, impartiality and integrity”.

Liberal Democrat peer Lord Goodheart argued that the CSC was unfit to regulate: “It should have been obvious to the government from the beginning that it is not an appropriate body to act as the regulator due to the nature of its membership and the possibility of conflicts of interest.

Andy Wigmore, policy advisor for the CSC, countered: “We expected these objections from our opponents because they want the FSA to be involved. Lord Goodheart is worried due to the CSC history but the CSC board members have no vested interest in the personal injury claimant process.”

The Grand Committee proceedings will finish next Wednesday, after which the government’s independent consultant and former Association of British Insurers director-general Mark Boleat, will compile a report for further debate in the chambers.

CSC to fight back over regulation snub with trade association

The Claims Standards Council will create a trade association for its members in an attempt to remain first choice in the race to find a claims regulator.

At the CSC’s annual general meeting next Wednesday, the board will put forward proposals to create the Claims Standards Institute as a separate autonomous body.

The decision follows concerns by House of Lords ministers that the CSC’s membership, which includes several claims companies, and historical roots, means it has underlying conflicts of interest.

Andy Wigmore, CSC policy advisor, commented: “Our aim is to remove the rogue operators from the industry.”

Original Article: Post