New financial tests for ATOL holders delayed
The CAA has confirmed it will delay the introduction of new financial tests for ATOL holders by six months until April next year.
This means they will first apply to existing licence holders during the ATOL renewal round that ends in September 2016. The tests will be applied to new applicants from April 2016.
The CAA said the reason for the delay was to make sure that the new tests are ‘appropriate to the size of the business’ and that they can be introduced in the planned online format without disruption to ATOL holders.
It said its decision to retain the Small Business ATOL has meant that the development of the tests has been more complex than expected.
"Although this has resulted in only a limited delay, we judged it best not to rush the change to the potential detriment of ATOL holders."
Full details of the new tests will be announced before the end of September, giving at least 12 months’ notice to companies affected by the changes.
At the same time, it will include an updated Financial Policy note setting out the new tests applicable to Small Business ATOLs and standard ATOL holders licensed for less than £5 million.
"Following the announcement, the CAA will work with travel trade organisations to make sure that their members understand the new tests and that any questions are promptly answered," it said.
"The introduction of the solvency test for SBAs will require some licence holders to change their ATOL renewal date to fit in with their financial reporting cycle.
"Licence holders who are affected will be contacted about this change when they next renew their licence."
All other changes to ATOL announced as part of the rebalancing programme are proceeding as planned.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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