The FSA is set to decide this summer whether further consultation is required on the issue of risk transfer.

The regulator is currently seeking feedback from the industry on the impact of the final rules requiring client monies to be held separately from risk transfer (insurer) monies.

A number of brokers have been asked their views on the cost, administrative burden and market impact of the rules. A spokeswoman for the FSA said: "It needs to be done as quickly as possible."

Although rules have been put in place allowing co-mingling until January 2006, brokers are concerned that they will be required to hold a separate account for each insurer they deal with.

Broker EH Ranson principal Simon Bolam said: "I am severely worried for small intermediaries. It would be a nightmare to have an account for each insurer. We would also be reliant on the software houses to facilitate this."