Clive Adamson has spoken on the effects from FCA will have on the London insurance market. He looked at how FCA will look and feel different from FSA, in terms of being a forward-looking regulator. He assessed the new supervisory categories and the three pillars on which FCA will base its supervisory approach. He focused on the first pillar, the Firm Systematic Framework (FSF), which will replace ARROW, and how FCA will differentiate between firms in assessing the appropriate intensity of supervision. He also considered the new prudential categories for FCA-authorised firms, while stressing that most non-intermediary firms in the London insurance market would be PRA-regulated for prudential matters. Finally he looked at risks specific to the Lloyd's and London market. He highlighted concerns over poor controls for underwriters over delegated authorities, and the high risks of financial crime. In terms of insurance intermediaries, the risks are in ensuring at each stage of the distribution chain that firms consider the consumer outcome, in poor design and mis-selling of low value products and in claims management and outsourcing. (Source: FSA Speaks on FCA and the London Insurance Market)