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FSA lifeline to dealers

Motor retailers that manage to submit their insurance regulation applications to the Financial Services Authority (FSA) before Midnight tonight will be able to continue trading legally during processing, according to the Retail Motor Industry Federation (RMI).

From tomorrow insurance sales are to be regulated and those that sell insurance products such as credit protection insurance, warranties, GAP products, and general motor insurance will need to be accredited by the Financial Services Authority (FSA).

The new transitional arrangement has been introduced by the FSA to cover businesses whose applications were received before the deadline, but would have faced an uncertain period as they could not technically sell insurance during processing.

Louise Wallis, the RMI's business development specialist says: "This interim measure allows businesses to continue to sell insurance products, while their application is dealt with. Companies whose applications are received after midnight tonight will have to cease trading until their authorisation has been completed. Dealers that submit their applications before midnight can continue as before while processing takes place, and the RMI is urging its members who have not registered to put all effort into registering before midnight."

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