British brokers appear to be closer to a compromise with the country’s Financial Services Authority (FSA), which wants to define any business turning over less than £1 million ($2.4 million) a year as “personal customers” with full consumer protection.

The Insurance Times reported that Eleanor Linton, the FSA’s head of policy for “high street firms”, told a brokers’ conference that the proposal was the key concern voiced by brokers responding to regulatory proposals. She said an alternative option is to divide commercial clients into two groups.

The draft for new British broking regulations, which come into effect in February 2005, will be published at the end of June, and consultation will continue for three months after that. The Insurance Times said final rules will be published in October, with “conduct of business” rules following in December.

The Insurance Times also reported British brokers won’t have to be compliant with the new laws when they obtain their new operating licences – they’ll have until February 2005 to get their businesses in order.