A single regulator should be created to replace the current financial protection schemes governing the travel industry.
The call comes today (Tuesday) from the Association of Atol Companies in its submission to the Department for Transport’s consultation which closes next week (August 15).
Consultation with members found that 95% support a single regulator rather than the multiple regulators that exist at present.
The AAC proposes:
- Reducing regulation in the UK to a single regulator to reduce costs and simplify the consumer proposition;
- Requiring all businesses that must protect consumer funds to be licenced;
- Replacing the financial protection currently in place with a policy of insurance which should cost no more than the current £2.50 APC fee;
- Allowing alternative schemes such as trust accounts but only under strict guidelines to prevent fraud.
Chairman Lindsay Ingram said: “We have worked hard to find a viable and simple alternative that matches the government’s wish to be rid of its potential liability.”
AAC legal advisor Alan Bowen said: “Our proposals are aimed at reducing costs to our members, simplifying the consumer guarantee of financial protection and ensuring effective licencing.
“Over 70% of our members support the idea that the CAA should expand its role to regulate non-air travel and 95% support the idea of an insurance backed scheme”.
The AAC said it has ensured that the insurance proposals will withstand scrutiny and called on the DfT to press ahead with changes as soon as possible.