Fleet News

Fleets get a warning over FSA registration

FLEETS have just weeks left to ensure that some of their key service providers have registered with the Financial Services Authority (FSA).

Under impending legislation, companies selling insurance that are not registered with the FSA by January 2005 will not be permitted to sell or offer advice on products.

The last date to submit an application to register with the FSA is July 13.

Simon Cashmore, managing director at RAC Corporate Services, said: 'If you advise, sell or arrange insurance, the FSA wants to know about it because you may need FSA authorisation.

'Regulation begins on January 14, 2005 but companies need to act now and some may have left it very late to get all the necessary paperwork under way. The FSA has six months to consider applications for authorisation, so the very last date to submit an application is July 13, 2004.'

The new regulation will not only cover insurance providers but also companies associated with insurance, which could include fleets.

A spokesman at UK law firm CMS Cameron McKenna, said: 'The FSA regulation will apply to any company, partnership or sole trader that advises on the merits of any type of insurance, buys or sells insurance as an agent, arranges for someone to buy or sell insurance, or assists in the administration and performance of an insurance contract.'

Groups failing to comply with the impending regulation will be dealt with by the FSA and could face criminal proceedings.

Cashmore said: 'The FSA plans to treat any non compliant companies very seriously, and failure to be authorised could result in directors being liable and facing criminal offences.'

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