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FSA warns of delays on new insurance rules

With the final version of new regulations governing the sale of general insurance products due out this week, the Financial Services Authority has said that, even though the legislation does not take effect until January 15 2005, it could take them up to six months to process an application. Failure to register in time could have a significant negative impact on dealer profitability.

Commenting on the new rules, Iain Stephens of Compliancy Services, who will be a keynote speak at AM's Aftermarket Conference in March, says: “There might be some pain involved in getting there and clearly there is also a financial cost. But dealerships which gain authorisation will be far more professional at what they do. Their customer service will improve because they've got to have the right processes and procedures in place. That can only be good for the trade, and it can only be good for the customer too.”

He said the regulations would affect a wide range of job titles in the dealership – not just F&I managers and sales staff, for example. They are going to affect areas like warranty claims administration and service reception as well.

Stephens will be speaking at the AM Aftermarket Conference, to be held in Oxford on March 19. The SMMT's Christopher Macgowan is chairing the event, which will also feature presentations from acknowledged industry experts on a wide range of current issues.

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