What entity regulates the daily operations of insurance brokers?

The Financial Conduct Authority (FCA) regulates the daily operations of insurance brokers. As a key regulatory body in the UK, the FCA is responsible for ensuring that firms operate in a way that is fair to consumers and that they follow legal and ethical standards in their practices. This includes oversight of how brokers handle customer funds, provide advice, and maintain transparency in their dealings.

The FCA sets rules and guidelines that insurance brokers must adhere to, thereby ensuring a level of protection for consumers and maintaining the integrity of the insurance market. By regulating the daily operations of these brokers, the FCA plays a crucial role in promoting competition, ensuring consumer choice, and protecting against market abuses.

Other entities mentioned, like the British Insurance Brokers' Association (BIBA) and the London Insurance Market Brokers' Association (LIIBA), primarily serve as trade associations, providing support and guidance to members but do not have the regulatory authority that the FCA does. The Prudential Regulation Authority (PRA), on the other hand, is focused on the stability of financial institutions rather than the day-to-day regulation of brokers. Therefore, while other organizations may influence or support the operations of brokers, the FCA has the definitive regulatory responsibility in this context.