Biba presents 7000 strong FSCS petition to Parliament

The British Insurance Brokers' Association (Biba) has presented a petition of nearly 7000 member signatures to Parliament demanding the acceleration of the review into the funding of the Financial Services Compensation Scheme (FSCS).

It calls for the House of Commons to urge HM Treasury to speed up the FSA's review of the FSCS consultation with immediate effect.

The movement has support from Jonathan Evans MP, Chair of the All Party Parliamentary Group on Insurance and Financial Services, who received the petition and will formally present it to the House of Commons tonight.

Evans has also agreed to apply for an adjournment debate on the subject within the House of Commons as an additional call for action on the unfairness of the current funding model.

The MP for Cardiff North commented: "The FSCS is clearly in need of reform and the number of signatures on this petition shows the depth of concern among brokers, who are already making significant contributions.

"The FSCS should do more to recognise this and if liability exists in the system then we need to direct the cost to where it is created."

The FSA announced in November 2009 that a review of the FSCS would be carried out but this was delayed in November 2010 due to European proposals and changes to the regulatory landscape which the FSA said may have potential consequences for the structure and funding of the FSCS.

However Biba is demanding the review is completed by April 2012, in time to avoid further increases in levies for brokers next year.

Eric Galbraith, chief executive of Biba, handed over the 6764 signature petition and said: "We are overwhelmed with the response to our petition; it adds weight to our campaign and sends a really strong message from brokers on how big an issue the FSCS is.

"With this year's increasing levies landing on brokers' desks shortly, it drives home the importance of achieving separation for brokers in the FSCS funding model, and once Jonathan presents the petition it will provide another official call to government to take action."