UK Freight Forwarders win Insurance Exemption

The UK Government has confirmed that freight forwarders have been given an exemption from the scope of the Financial Services Authority (FSA) insurance regulations.

"I am delighted that our 'four-year' campaign to secure an exemption from the requirements of the Insurance Mediation Directive (IMD)for freight forwarders, which has involved a change in UK legislation," said Colin Beaumont, director general of the British International Forwarders Association (Bifa).

As a result of the IMD exemption for freight forwarders, they will no longer need to be registered with the FSA to offer marine or cargo insurance.

Said Philip Stephenson, joint managing director of Davies Turner, the UK's leading independent freight forwarder: "Additional regulation was unnecessary as there weren't any significant consumer protection issues."

However, freight forwarders that have already obtained authorisation from the FSA will continue to be liable for FSA fees unless they apply to cancel their authorisation. This can be done by using the FSA's website at www.fsa.gov.uk. So not to be charged for the current year, freight forwarders that have FSA authorisation must complete this process by the end of August.