Companies without FSA authorisation to sell secondary insurance products are likely to experience significant disruption to business after Friday, warned Grant Thornton financial markets group partner Ian Gorham.
A Grant Thornton survey found that 40% of the secondary market firms it questioned had not yet applied for FSA authorisation.
The company said in its experience the whole process to gain authorisation and be compliant with FSA guidelines takes up to a year.
“Any business waking up to this news so late in the day is in for a shock,” said Gorham. "Particularly secondary market firms, who rely on insurance sales for much more of their profits than many people realise.”