The Irish Brokers Association today slammed IFSRA's proposed €20m levy on the financial services sector, saying its result could be higher insurance costs for ordinary consumers.
The IBA said that the knock-on impact of spiralling costs could also drive smaller brokers out of business leaving the customer without a source of independent advice.
IBA president David Cowman said: 'Over €6.5m of the proposed levy will be paid by the insurance sector, with brokers and mortgage intermediaries paying almost €2m of that in 2004, rising perhaps to €4m plus in 2005.'
Cowman said the proposed levy has serious implications for its 750 member offices throughout the country.
He said: 'The levy will have a disproportionate effect on independent brokers than on bigger players such as the banks who can build these costs into their charges to consumers.'
