Removal firms don’t know which way to move as the Financial Services Authority deadline regulating the sale of insurance looms ever closer.

Along with many other businesses, all removals firms need to be authorised by the FSA by 14 January 2005 if they are to be involved in offering insurance to their customers.

But because of the backlog of applications, firms should have registered with the FSA this week and because of the difficulties it is feared many removal firms have not applied.

Conducting unauthorised business after 14 January will be a criminal offence, and there will be an obligation on product providers to ensure that they only deal with regulated, or legally exempt, intermediaries in respect of their insurance business.

The impact on removals firms will obviously be great, says the British Association of Removers (BAR), not only in terms of lost income if they opt out, but also due to the costs, administrative burden and learning curve involved if they have decided to register.

The FSA rules fill an estimated 58,500 pages, that is 117 reams of paper, which if stacked, is 19ft high!

The impact on consumers, however, could be even greater, if the majority of firms decide not to offer insurance any more.

"As a trade association, our concerns are twofold," commented Robert Syers, general secretary of BAR. "Firstly how it will affect our member firms and secondly the impact on the consumer if many firms opt out altogether. The latter is something we do not want to see happening. Because of this, BAR is actively exploring alternative options for those companies that do not become authorised, so that the public can continue to be protected during the moving process - a process fraught with potential risks."