The FSA has published a policy statement setting out the final rules for regulating Connected Travel Insurance (CTI).
Regulation of CTI – which is sold mainly through travel firms and holiday providers - will come into force on 1 January 2009.
Travel firms and holiday providers currently selling CTI products now need to decide whether they want to be fully authorised by the FSA, be an appointed representative of another FSA-authorised firm, be an unregulated introducer (therefore only providing leaflets and information), or no longer offer CTI products.
The FSA will start to accept authorisation applications for the new CTI activities from 30 June 2008.
Dan Waters, director of retail policy and themes at the FSA, says: “Regulation is only seven months away and firms need to make sure they are fully prepared. We start accepting applications next month and firms are advised to apply early to ensure that they are ready in good time for the start of the new regulation next January.
“Our rules are designed to put in place a proportionate, risk-based regulatory regime for these sales of travel insurance, securing protection for customers."IFAonline
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