From 14 January 2005, insurance sales are to be regulated, and those that sell insurance will need to enrol with the Financial Services Authority (FSA). This will cover extended warranties, credit protection insurance (CPI), GAP insurance, and general motor insurance, among others.
Louise Wallis, the RMI's business development specialist, explains: “To continue selling insurance, RMI members will need to be registered with the FSA. With the deadline for registration now less than a year away, the clock is ticking.”
To qualify for registration dealers will need to reach standards set by the FSA, and pay an annual fee.
Wallis added: 'Dealers derive a great deal of their profits from the sale of insurance, and a large chunk would be at stake for those that fail to register, so they should act now to make sure they are ready for the new regime.'
Those that do not register, or don't meet the standards required, will only be allowed to be an insurance introducer. This would mean they could only display leaflets, and would be prohibited from influencing a customer's insurance-buying decisions.”