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New FSA alternatives from RAC

RAC Warranty is preparing to launch new products which it claims will be of great benefit to dealers who have failed to gain Financial Services Authority (FSA) approval.

Managing director Don Pinkney says many dealers are uncertain what to do after missing July’s deadline for submitting applications to the FSA in order to gain the required approval necessary for January so they can continue selling insurance-based products.

RAC Warranty has a team of seven staff working on alternative options. “We will launch a brand new range of products for 2005 that will look after dealers that have not been able to get through FSA legislation in time,” says Pinkney. “I can’t give any details at this stage, but the bottom line is that we will have products which will not be insurance. There will be a way around it for warranties.”

However, he warns that if dealers wish to sell other products which are insurance-based they will still require registration with the FSA.

“Since we have the licence agreement with RAC until at least 2011, we are able to invest heavily in training to assist dealers and sales people, not only in FSA compliance but also in how to sell the benefits of a warranty policy to customers,” says Pinkney.

He says the business is going “from strength to strength” this year, and has already sold around £40m worth of policies to the trade.

RAC Warranty representatives will begin informing the company’s network of around 1200 dealer clients about the FSA alternatives towards the end of the year.

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