GISC urges brokers to wise-up before authorisation begins

Brokers should start preparing for the FSA authorisation process early next year or risk massive costs. That was the view of GISC's Branko Bjelobaba, speaking at the SSP-KeyChoice Conference last week.

GISC's general manager for strategy and development called on delegates to start modernise their businesses soon by embracing online channels.

"The nearer we get to the compliance deadline in 2004, the costlier it will become for brokers to implement new systems," he said.

However he called on the FSA to devise a "sensible" process to deal with the expected "50,000 applications from brokers."

Outlining the likely authorisation timeline Bjelobaba supported the FSA's stance on non-compliant firms. He said: "Businesses will not be able to continue trading if refused authorisation."

Bjelobaba also warned brokers against so-called software "panic-buying" in a bid to meet FSA compliance demands.

"Unscrupulous software consultants will try and take advantage of the situation. The industry should prepare early to avoid such pitfalls," he warned.