Director of AMI, Chris Cummings, said he was alarmed at the lack of awareness being shown by some intermediaries, especially seeing as insurance-related income often forms a very significant proportion of a firm’s income.
He said: “We (AMI) have been travelling all around the country helping brokers to prepare for regulation. I honestly believe that the full scale of insurance regulation has simply not hit home with many firms.”
He went on to urge firms who had applied for direct authorisation to double check their permissions to ensure they were covered. “Do it today, and if you need to extend your permission then do that today as well,” he said.
Cummings admitted that the exact size of the problem was difficult to quantify. However he said from 1 November firms could expect a range of measures from AMI aimed at helping them through insurance regulation. These will include factsheets and training seminars.
Richard Fox, who from 1 November will be chief executive of the Society of Mortgage Professionals, commented. “I have been on the road for the last three weeks and would agree with Chris that there are still people out there who have not prepared for insurance regulation.”
He added: “Most brokers have been so focused on ‘Mortgage Day’ that we do need a drive to remind them of their responsibilities regarding insurance.”
