Changes to insurance brokers registration council

Membership of the Insurance Brokers Registration Council, the independent body which registers and regulates insurance brokers, is to be reduced in size from 17 members to 10 under proposals announced today by Economic Secretary Melanie Johnson.

A draft order laid before Parliament today, will enable the Council to manage its affairs efficiently in the period before it is disbanded.

Miss Johnson also announced the nomination of a new member to the Council, Mr Ian Bond, to assist in the carrying out of its responsibilities during the final phase of its operations.

The legislation proposed today would also provide requirements for an election for broker representatives to be waived if the Council considered it necessary. The existing election scheme will be replaced by a simpler scheme in line with the Treasury's intention of stream-lining statutory requirements and providing support to the Council for as long as it remains in being.

Subject to Parliamentary approval, the proposed legislation will come into effect in the next few weeks.

Notes for editors

1. The Council comprises members elected by the broking community, who form a majority, and public interest appointees nominated by, but independent of, the Treasury. Members of the Council are paid attendance fees, travelling and subsistence allowances at rates determined by the IBRC. All are paid by IBRC (and not HMT).

2. Ian Bond, 62, is a qualified accountant whose professional career developed with Deloitte Plender Griffiths/Coopers & Lybrand. Within the insolvency specialism, Mr Bond focussed on the insurance industry, and dealt with, among other matters, Lloyds brokers and managing agents. He has also had considerable involvement with professional and trade bodies. The duration of Mr Bond's appointment has been set at three years or until the 1977 Act is repealed, whichever is the shorter.

3. IBRC was set up under the Insurance Brokers Registration Act 1977 to register and regulate insurance brokers. The Treasury has a stated intention to wind-up the IBRC as soon as practicable after the Financial Services and Markets Bill becomes law.