Misys has denied allegations that it is playing on brokers' fears of FSA regulation to sell its software.
The denial follows a complaint from a broker in Wales that the software house had encouraged him to upgrade to a new application on the basis that his old system was not compliant.
The broker said: "The account manager told me that my old Option 2000 system was not suitable to meet FSA requirements, and that I must upgrade to the BROOMS12 application.
"It is disgusting that Misys is using the FSA as a tool to encourage people to make the upgrade."
Misys general insurance sales director James Gamble said: "Misys has not encouraged any customers to upgrade or buy new systems on the basis that the old system is not compliant. Technology alone cannot make a broker compliant.
"In circumstances where a customer's system does not have capacity for future software updates [to assist brokers with their compliance programs], we will alert that customer of any limitations and suggest an appropriate upgrade path."
The FSA said it would not be investigating the sales techniques of software houses.
A spokeswoman said: "It is up to individual firms to determine what they need to do to comply.
"It is not up to the FSA to tell software houses how to behave."
