A life office with 17 different back-office systems is believed to have been warned by the regulator to streamline its systems ahead of changes to reporting regulation.
Money Marketing understands that the company was told by the FSA that it will not accept its information from 17 different sources and that this data will have to be aggregated to be acceptable.
By the second half of 2005, all life offices will be submitting financial and actuarial reports and quarterly sales figures to an FSA extranet.
One of the major hurdles that providers such as Axa, Norwich Union and Standard Life face is contravening the Data Protection Act as a result of merging existing databases.
Marlborough Stirling marketing director Greg Clay says: “There is no longer the same number of skilled people who can operate these legacy systems and I would imagine providers having to make changes to many different systems is causing huge concern.”
FSA spokesman Robin Gordon-Walker says: “Life offices will have to streamline back-office systems by definition of the requirements to move to e-reporting. Our aim is that this will make things simpler.”