Car dealers are still struggling to comply
with changed general
insurance regulations imposed by the
Financial Services Authority.
These new regulations came into effect on January 14th this year,
but the most recent Motor Trader Franchise Barometer indicates that
these are not yet being implemented consistently.
More than a third of car dealers reported that they were not
confident about their staff's consistence compliance to the new
insurance guidelines set by the financial services watchdog.
According to the Financial Services Authority's new rules, any
general
insurance provider needs to be authorised by the financial
services watchdog in order to sell insurance.
Insurance providers need to apply formally for accreditation as
insurance provider that is approved by the Financial Services
Authority.
Insurance staff should be trained continuously and should be tested
on the knowledge and general principles of insurance.
Further guidelines include that the insurance provider needs to
submit details of the staff members that are the people approved to
run the organisation.
The insurance providers that get authorisation from the Financial
Services Authority must also maintain net assets of the highest
between five per cent of net income from insurance or
£10,000.
