Eric Galbraith, BIBA's chief executive, made the call after revealing that BIBA research showed the only two significant risks of market failure that insurance brokers pose to the regulator's objectives are the potential for low quality advice resulting in the mis-selling of products, and the potential for loss of client money.
Yet the research also uncovered the heavy burden of direct and indirect regulatory costs to general insurance brokers in the UK. These costs are three times the size of the second most expensive European State, Ireland.
BIBA believes that this should be the focus of new regulation and not the current overly costly and disproportionate system of regulation.
Galbraith said: "Our members tell me repeatedly that they want certainty and so a more prescribed approach on areas like capital requirements and adequate resources would seem to be more appropriate.
“We are an important, valuable and low risk sector. This should be reflected in a more appropriate and proportionate approach from the regulator. We would therefore welcome the opportunity to discuss with HM Treasury, the FSA and the new FCA, how this can best be delivered."
Commenting on the research, Steve White, BIBA's Head of Compliance and Training, said: "The research highlights just how out of line with the rest of Europe the regulatory costs to UK brokers are. Not only are the direct costs, such as the fees and levies the highest by a wide margin, but the indirect costs bear no relation to costs elsewhere in the EU."
