The Coalition UK Government led by the right wing Conservative party, have fired their first major shot in the destruction of the Bureaucratic State with the announcement last night of the abolition of The Financial Services Authority, The FSA, which governs the regulated activities of all sectors of the UK Insurance Market.
In a speech to those lovable Bankers and Merchants (Merchant Bankers having a Ruby to you and me Cockneys!) at the annual Lord Mayor of London’s dinner at the Mansion House last night, Champagne swaffing hatchet man George Osborne announced that the FSA will cease to exist in it’s current form by 2012.
“What we are proposing is a new system of regulation that learns the lessons of the greatest banking crisis in our lifetime. I can confirm that the Government will abolish the tripartite regime, and the Financial Services Authority will cease to exist in its current form.
“We will create a new prudential regulator, which will operate as a subsidiary of the Bank of England. It will carry out the prudential regulation of financial firms, including banks, investment banks, building societies and insurance companies.”
The news will probably be met with cries of “hurrah” from Insurance Brokers up and down the Country, who have for five years been complaining about the unfair business practices demanded by the bureaucrats and exorbitant costs of Fees.
Without doubt, The UK Insurance market has shrunk since the FSA came to power due partly to to restrictions and barriers to entry to the market, imposed by the FSA.
What prudential authority is created to replace it remains to be seen. ……
It’s all a little deja vu and while we resent paying our FSA fees as much as the next person involved in UK Insurance, one cannot but think, haven’t we been here before? and before…….