The Financial Services Authority (FSA) has warned double glazing companies selling deposit indemnity insurance and insurance backed guarantees that they will have to sign up for regulation by the FSA from 14 January 2005 or stop doing this business and lose the income it generates.

The change results from a European directive known as the IMD – the Insurance Mediation Directive – which comes into force on 14 January 2005. In order to implement the IMD in the UK, the Government has given the FSA responsibility for regulating the sales of general insurance products.

Sarah Wilson, Director of the FSA's High Street Firms Division says:

‘As double glazing companies you probably don't see yourself as part of the financial services industry. But this is all about to change. In just under a year, you will have to be regulated by the Financial Services Authority.

‘This means that it will become a criminal offence to continue selling deposit indemnity insurance and insurance backed guarantees after 14 January 2005 without becoming FSA regulated.’

For impartial, relevant information about what FSA regulation means, the choices involved and forthcoming training workshops visit www.fsa.gov.uk/mgi or ring the FSA's dedicated Contact Centre on 0845 605 5525.

To become FSA regulated, businesses have two options: to apply for direct authorisation by the FSA; or to become an Appointed Representative of an FSA authorised firm (known as a principal). For more details about these options see the information pack or visit www.fsa.gov.uk/mgi

Source

Glass Age