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Change in FSA policy
Page 67
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If you want to carry on selling insurance you need to be authorised Used truck dealers who provide their own insurance-based vehicle warranties,or GAP and payment protection policies, will be prevented from doing so by law from January 2005 unless they have authorisation from the Financial Services Authority (FSA). Insurance compliance expert Branko Bjelobaba told a stunned audience at the recent Daf Endurance Dealer conference that legislation due in January 2005 will prevent dealers directly selling insurance products, including payment protection, on CVs unless they are authorised by the FSA.
While normal new vehicle warranties, contract hire and leases and buy-back deals will be unaffected, the new EU-generated rules will prevent an unauthorised person from offering GAP or loss of earnings insurance cover on a truck or any used vehicle warranty or warranty extension which is insurance-based.
Bjelobaba says that anyone, salesman or dealer, without FSA authority will not only have to cease selling insurance products from 14 January 2005; they will also Ii cease managing existing policy cover,or risk fines and prosecuti Dealers and salesmen who choose not to apply for FSA authi tion must either appoint a representative or agent who is authol or'introduce' customers to an independ FSA-approved insurance provider, all Bjelobaba says the expression 'intro& yet to be fully qualified within the new I Meanwhile, he says that CV dealers c ering applying for authorisation shouldl before 14 June 2004 as the FSA can take months to process an application.
A sliding scale of charges for gaining ain tion is being proposed depending on the ar of insurance business a company does, althc discount is available for applications made t FSA via the Internet.
• For more details see CM 16 October.