http://peterbirks.livejournal.com/ ([identity profile] peterbirks.livejournal.com) wrote in [personal profile] peterbirks 2010-09-23 11:45 am (UTC)

Yes, I remember when I bought my car at the end of 2008 I had to sit with an FSA-regulated guy rather than the original salesman, as I casually answered "no" to every question (I was paying cash for the car anyway, which I assume is a minority of deals, although perhaps not as small a minority as we might think).

Some of this can be blamed not on FSA regulations (although most of it, including anti money-laundering and "know-your-customer" rules can) but on the recent growth in compensation culture and insurers' own demands when they write liability policies.

To ensure that a professional indemnity or other liability policy is enforceable by the claimant, a general indication that certain prescribed procedures were followed is demanded by the insurers. To be on the safe side, the compliance officer and risk management officer add on a bit of slack for safe-keeping. The net effect is to waste millions of man-hours as people have to say crap and others have to listen to it, wasting time when something more productive could be done.

PJ





PJ

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