1 July 1999
APPOINTMENTS TO INSURANCE BROKERS REGISTRATION COUNCIL
Economic Secretary Patricia Hewitt today announced the appointment of three Treasury nominees to the Insurance Brokers Registration Council (IBRC):
Ronald Armstrong OBE Mr Armstrong, 59, qualified as a solicitor 1965; Head of Legal Services at the Building Societies Association from 1976, then Deputy Director General until 1997; consultant to BSA and Council of Mortgage Lenders; non-executive Director of Stroud and Swindon Building Society since 1998.
Bryan Lincoln Mr Lincoln, 60, partner in Jeffrey Green Russell (JGR), solicitors; Treasurer, British Insurance Law Society; writer and speaker on insurance law; member of the panel for the Office for the Supervision of Solicitors.
Dr Oonagh McDonald CBE Dr McDonald, financial and management consultant; MP for Thurrock (1976 - 1987); member of the council of the Consumers' Association (1988 - 1994); director of the Investors Compensation scheme since 1992; board member of the Securities and Investments Board (now part of the FSA) since 1993; member of the Financial Services Authority's Ombudsman Scheme Board since 1999; public interest member of the General Insurance Standards Council since 1999.
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NOTES FOR EDITORS
1. The IBRC was set up in 1977 to regulate insurance brokers. The Council comprises members elected by the broking community, who form a majority, and public interest appointees nominated by, but independent of, the Treasury. Treasury appointees are paid attendance fees, travelling and subsistence allowances as determined by the IBRC.
2. The duration of the appointments has been set at three years or until the Insurance Brokers (Registration) Act 1977 is repealed, whichever is the shorter.
3. The Economic Secretary announced the appointment of nominees in reply to a Parliamentary Question from Jackie Lawrence (Preseli, Pembrokeshire).
4. In her reply, the full text of which is attached, the Economic Secretary also confirmed the Government's intention of providing for the repeal the Insurance Brokers (Registration)Act 1977, which established the IBRC, in the Financial Services and Markets Bill now before Parliament. In the meantime, the IBRC remains charged with carrying out certain statutory functions; notably the registration of financial services intermediaries who trade as insurance brokers.
Jackie Lawrence (Preseli, Pembrokeshire) :to ask Mr Chancellor of the Exchequer, what plans are there for regulation of intermediaries dealing in general insurance?
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Patricia Hewitt
As my Rt Hon Friend the Member for Airdrie and Shotts (Mrs Liddell) announced on 27 July 1998 (OR,WA,Cols 23-24), the Financial Services and Markets Bill, now before the House, will provide for the repeal of the Insurance Brokers (Registration) Act 1977. Subject to the approval of Parliament, this will end the statutory status of the Insurance Brokers Registration Council (IBRC). The Joint Committee on Financial Services and Markets' recent report on the draft Bill supported this approach.
I am grateful to the current IBRC members for their work in continuing to serve on the Council in the interests of the insurance broking community during the present transitional period. To assist them in that task, I have today, under existing powers, nominated three new members to fill vacancies on the Council, to serve until the Council's statutory status ends:
Ronald Armstrong OBE
Bryan Lincoln
Dr Oonagh McDonald CBE
I am pleased that, since my Rt Hon Friend's announcement, the insurance industry, including general insurance intermediaries, has risen to the challenge she outlined. A broad-based range of support has developed for the General Insurance Standards Council (GISC), a new voluntary body to promote high standards of professional conduct among general insurance intermediaries.
The GISC is committed to strengthening industry standards and developing general insurance intermediaries' services to the public in all parts of the market. It plans to complement the statutory responsibilities of the Financial Services Authority (FSA) while stripping away unnecessary regulatory requirements on general insurance intermediaries. The GISC has gathered support with impressive speed. If it can fulfil its promise, it will provide valuable services to both general insurance intermediaries and their customers.
There may in future be a case for statutory regulation of general insurance intermediaries. If so, the Financial Services and Markets Bill contains a provision which would enable the Treasury to specify regulated activity, and to give regulatory responsibility to the FSA. For the moment, I have no plans to specify advice on general insurance as a regulated activity.
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