Correctly drafted agency agreements are vitally important. Without them, retailers are liable to refund consumers when an ATOL holder fails. The CAA has just made some amendments to the wording it requires in these agreements, and introduced a new rule that agency agreements must be dated. This means that ATOL holders must now issue updated agreements to their agents. Although the CAA has given a six months’ grace period for this to happen, it is very important that both agents and principals start the process as soon as possible. We have drafted a model agreement for Members to use and I would strongly recommend that you use it. Failure to get any part of the process right could result in rejected consumer claims and ATOL holders would be in clear breach of the ATOL regulations.
Mark Tanzer, Chief Executive