Thousands of UK motor dealers will be unable to sell insurance from this weekend, having failed to register with the Financial Services Authority (FSA), the Retail Motor Industry Federation (RMI) has warned.

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From Friday 14 January, insurance sales are to be regulated and dealers that sell insurance products such as credit protection insurance, warranties, GAP products, and general motor insurance must be accredited by the FSA.


An RMI spokesman said: “Despite numerous warnings many dealers have failed to act in time, and face an uncertain few months where they will have the choice of giving up their insurance business, or acting illegally.


“Dealers are still being urged to register, and the FSA will process applications as fast as possible.”

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