Alexander Forbes said insurance brokers who had not yet applied for authorisation had underestimated the complexity of the application process and were risking the ongoing viability of their businesses
Figures published by the FSA show just 21% of general insurance brokers have applied for authorisation with only two months to go before the deadline for guaranteed January 2005 authorisation passes, said the management and risk specialist company.
Alexander Forbes director Patrick Boreham said: “Brokers who haven't got their act together will miss out on application discounts if they have not applied by 31 May 2004.
“But any firm that misses the 13 July 2004 application cut-off is being alarmingly complacent about the importance of regulation.”
IFA Mentor director Alistair Hollows said: “The application process does take time to complete, and missing or incorrect information on the applications could lead to an extended delay in obtaining authorisation.
“Any firm that is not well down the road towards completing the process or that does not have arrangements in place to check the content of their application runs the risk of being unauthorised and unable to conduct business come 14 January 2005.”
Alexander Forbes subsidiary AFP Consulting and IFA Mentor have created an FSA application assistance service to help general insurance brokers complete their application forms accurately and in time.
