Controversial new proposals to change how investment and insurance intermediaries are regulated in the UK are to be monitored by the Central Bank.
Accepting there were similarities between the grouping and regulation of investment intermediaries in the Irish and UK systems, a Bank source insisted there were important differences. The Irish system was more consistent with a new Insurance Intermediary Directive expected from the European Commission, the source suggested.
In Britain, the Financial Services Authority (FSA) has criticised the current categorisation or "polarisation regime", arguing it stifles competition and innovation. In a consultation document, it has proposed that polarisation be abandoned.
It has also mooted the introduction of greater disclosure obligations and a move by independent financial advisers from a commission payment system to a system where clients pay fees for services.
The British authority wants to allow tied agents sell more than one company's products and to scrap the rules limiting investment by insurers and fund managers. Last April, the Central Bank took over responsibility for the regulation and supervision of Irish insurance intermediaries. Three categories of intermediary were established under the regulatory framework: - Restricted Activity Investment Product Intermediary (RAIPI), Authorised Advisers and Authorised Cash Handlers.
