Delayed consultation gives brokers less time to be compliant
The FSA has dealt brokers a major blow by delaying the establishment of a forum for software companies until it finishes its consultation period.
Brokers will now have less time to become compliant
As reported exclusively in Insurance Times on 15 May, software firms called on the FSA to establish a consultative forum, similar to the one run by the GISC, to keep them informed about broker regulation. But the FSA has now decided to delay it until October, despite FSA high street firms head of policy Eleanor Linton saying in May that the establishment of a forum would be "put in hand".
An FSA spokeswoman said: "What we've said to the software industry is that once we've published our consultation paper on regulatory reporting we'll set up a meeting to talk about our requirements and address concerns."
The consultation paper on regulatory reporting was initially expected at the end of July, but will now be released in late September, after the near final rules for CP159 and CP174 are released.
But Sirius chief executive Mike Dodd said that with Sirius planning to deliver a broker compliance software module in September, the establishment of a forum in October would be too late.
"We've already done most of the work and the FSA should be in the loop on that. But we've had no official or unofficial meeting with the FSA," he said.
Software Solutions Partners chief executive David Rasche said that while its compliance officer was talking to the FSA, the company had been told that there was no point establishing a forum until the rules had been finalised.
"They still don't seem to have accepted the need for software houses consultation prior to them finishing their consultation," Rasche said.