Who is responsible for regulating brokers in the London Market?

The correct answer is the Financial Conduct Authority (FCA), which is the body responsible for the regulation of insurance brokers in the London Market. The FCA's primary role is to oversee and enforce regulations that ensure consumer protection, maintain competition, and foster integrity within financial services in the UK. This includes establishing the conduct rules under which insurance brokers must operate, overseeing their compliance with these rules, and taking action against those who fail to adhere to regulatory standards.

The FCA’s regulatory framework covers several areas pertinent to brokerage, including the requirements for license applications, maintaining appropriate conduct towards customers, and handling complaints effectively. By regulating brokers, the FCA aims to uphold a robust financial market in which consumers can operate with trust and confidence.

Other organizations mentioned are involved in various capacities, but they do not hold the regulatory authority for brokers. For instance, the Lloyd's is significant as it operates a specific insurance market, and LIIBA represents the interests of insurance and reinsurance brokers but does not regulate them. The Financial Ombudsman Service (FOS) provides dispute resolution but is not a regulatory body overseeing broker operations.