The Creditors of Independent Insurance Group (CIIG) will file its group litigation order against the Financial Services Authority (FSA) at the High Court within 10 days.
CIIG chairman Kevin Young said the order had been put together by the group's Queen's Counsel, outlining the alleged failings of the FSA in the collapse of Independent Insurance.
He said the CIIG would then set a time limit, most likely a few weeks, for creditors to sign up to the order or lose their chance to take action against the FSA.
"I get a lot of people phoning me for updates, who say they will join up when something official is lodged and this is their chance," Young said.
"This will force anyone sitting on the fence to decide whether they want to join or not."
He said the order would force the FSA to release documents relating to its dealings with Independent.
Last July Insurance Times revealed that the French insurance regulator had warned the FSA of its concerns about Independent's reserving as early as December 2000.
Young said the FSA's failure to foresee Independent's collapse made future FSA regulation for brokers a bitter pill to swallow.
"A lot of problems in the past have related to insurers, not brokers, yet brokers are being asked to take on a stringent regulatory regime," he said.
"What's the point of having a regulator if they don't regulate."
Young said, despite talk that the CIIG was running out of steam, it was continually moving the situation ahead.
"The reality is that it's been frustrating because we haven't had a lot of help from the liquidator, so we need more documentation before we pursue KPMG or Watson Wyatt, and the Serious Fraud Office still hasn't interviewed
Michael Bright," he said.
"The CIIG is very necessary because, at the moment, we don't see anyone else doing anything."
