The Australian Securities and Investments Commission (ASIC) has denied persistent rumours that it may be forced to extend the licensing compliance period of the Financial Services Reform Act (FSRA) to accommodate a last-minute rush.

“We will not be extending the period at all,” Australian Securities and Investments Commission Director of FSR Licensing & Business Operations Pauline Vamos said. “Definitely not. Those who don’t comply may find themselves out of business.”

National Insurance Brokers Association (NIBA) consultant John Hanks said brokers are “feeling the pressure” as March 2004 moves closer. He says companies have to seriously think of how they want to structure their business and whether they want to provide personal advice to consumers.

He said the FSRA regulations, which occupy hundreds of pages, appear complicated at face value and differ enormously from the old “20-something page Brokers Act of the old days”.

“Brokers should be deciding whether they will remain independent or sell out to a larger company,” he said. “We’ve seen countless takeovers and mergers over the past two years by companies like OAMPS. But there’s no reason a company can’t continue if they comply and are willing to adapt to change.”

NIBA FSRA workshop co-ordinator Eric Thomsen says that although brokers are relatively positive about the regime, some are only now beginning to realise the seriousness of the situation.

“In a sense Armageddon has arrived for some smaller brokers,” he said. “They can’t ignore the situation because it’s not going to go away.”

Mr Hanks says NIBA may consider completing more workshops to ensure brokers who decide to remain in business are up to date with the latest directives issued by ASIC.