AAC calls for single financial regulator
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The Association of ATOL Companies (ACC) has called for a single regulator in the financial protection market in its response to the Department for Transport (DfT).
Amongst its proposals to the DFT, the AAC also suggested that all businesses that must protect consumer funds should be licenced; an insurance-backed scheme should replace the current financial protection in place and that alternative schemes such as trust accounts should be allowed.
Its proposals come as the DfT opened up ATOL plans to a public consultation after the Air Travel Trust (ATT) moved into surplus in May.
“We have worked hard to find a viable and simple alternative that matches the government’s wish to be rid of its potential liability and we are grateful to our Premier Partner Giles Insurance for their efforts in reaching this solution,” said the chair of the AAC Lindsay Ingram.
In a survey of its members, the AAC said 70% of its members think the CAA should expand its role to regulate non-air travel and 95% backed an insurance based consumer protection scheme.
AAC’s legal adviser Alan Bowen said: “Our proposals are aimed at reducing costs to our members, simplifying the consumer guarantee of financial protection and ensuring effective licencing.”
The association urged the DfT to “press ahead with changes as soon as possible”.
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