Independent British freight forwarder Davies Turner has issued a statement welcoming the UK government's decision to remove freight forwarders from the scope of Financial Services Authority (FSA) regulations covering marine or cargo insurance.
Philip Stephenson, managing director for the multi-modal logistics group, commented: We welcome the news that freight and logistics companies will no longer need authorization from the FSA to offer such insurance direct to customers.
He added: Anyone in the international trading environment who has followed the issue before and after January 14, 2005, will know that individual companies and trade or freight associations such as BIFA have lobbied long and hard to amend or simplify the implementation of the Insurance Mediation Directive.
From the outset, Davies Turner shared the view that additional regulation was unnecessary as there weren’t any significant consumer protection issues, and our industry should compete on a level playing field along with the rest of Europe.
Davies Turner was successful in registering with the FSA before the new Insurance Mediation Directive took effect, and has therefore been able to continue providing marine insurance cover for its customers.
However, Mr Stephenson went on to state: [T]he FSA registration process was not a simple one and significant costs have been involved, both in support of registration and its continued maintenance, including staff training.
So we welcome the news that later this year there will be a short consultation paper on the change, along with draft secondary legislation that we hope will become law as soon as possible, he concluded.