Business leaders express concern about new bill
Commercial insurance
29th January 2010
A UK business group has warned that the financial services bill could create a "US-style litigation culture" in the UK.
The Confederation of British Industry (CBI) claimed that provisions made in the legislation for "collective proceedings" may lead to class-action suits led by groups of lawyers, potentially impacting on the jobs market and costing consumers money in the long run.
According to the CBI, the bill has the potential to "hamper businesses and prevent innovation" and could affect sectors of the economy other than the financial services industry.
"Legislation must be aimed at helping the economy, not hitting it with legal bills that will ultimately cost consumers money," CBI director of public affairs Matthew Fell stated, something that may be of note to those seeking insurance for business.
The bill passed the final stage in the House of Commons and also includes measures to create a new body to enhance coordination within the banking industry and provide additional powers to the Financial Services Authority.
For more information on how Giles can help you with your business insurance, Click here.
