Bankhall has estimated that up to 20 per cent of general insurance intermediaries could go out of business once statutory regulation begins on January 15, 2005.
The IFA support services group says that one in five firms will fail to meet the requirements when they apply for FSA regulation beginning next year.
However, Bankhall says the gap left by these firms' exit will create substantial opportunities for those capable of establishing compliant procedures.
Group sales director Shaun Godfrey says: “It is time for action not complacency, livelihoods are at stake here. Comprehensive systems and procedures need to be put in place to ensure compliance come D Day and the sooner this starts to happen the better.”