The British Insurance Brokers' Association (Biba) and the Association of Independent Financial Advisers (AIFA)have asked for further clarification from the Financial Services Authority (FSA) ahead of upcoming changes.
The FSA has recently published ‘Journey to the FCA' to provide more detail on the changes that will occur and impact brokers when the Financial Conduct Authority (FCA) becomes effective in early 2013.
Steve White, Biba's head of compliance and training, said: "We welcome the signal in the paper that the FCA will work closely with trade associations going forward.
"However, we continue to remind the regulator that regulation needs to be appropriate, proportionate and cost effective."
In addition, the Association of Independent Financial Advisers (AIFA) has called for more accountability in the new body.
Chris Hannant, policy director at AIFA, said: "The introduction of a new regulator offers an opportunity to set out clear criteria that we can use to measure its performance.
"Regulatory authorities have previously had far too little public accountability for their actions.
"We would like to see clear and transparent outcomes set for the FCA that it can be judged on. At present the proposed criteria are far too subjective.
"The regulator has made clear it will take a more interventionist approach. A key measure of the success of this approach will be a reduction in compensation claims and overall levels of compensation."
Eric Galbraith, Biba's chief executive, added: "Regulation is the big issue on members' agenda. The paper from the FSA is a positive step but we still want certainty from the government that the cost and style of regulation is proportionate to the low risk and nature of insurance brokers."
