An initial 2021 consultation had included the issue of pipeline funds, which the CAA said were a risk to Atol holders when a retail agent collapsed. It asked whether there should be a requirement for agents to immediately pass such monies to the Atol holder or whether agents should also be required to adopt a form of segregation for these funds.

The issue is however not part of main proposals in the latest Atol Reform consultation, published on Tuesday (24 January).

The CAA’s head of Atol, Michael Budge, said: “In this document we have decided to pause on the changes to the arrangement. Until we have the final position on reform to Atol holders, we will then consider to what degree and extent changes are needed from the agent’s perspective.”

However, the document does ask if agents “should be subject to the same requirements as Atol holders in terms of protecting customer monies”, or if there should be a different set of requirements specifically designed for agents and pipeline monies.

It adds: “Given that the scope of the CAA’s regulatory oversight does not extend to agents directly, in your view how could the implementation of any such requirements be achieved?”

Budge said any new views received would help speed change.

“We think it sensible to hold off until we have heard back more from the industry,” he said, but added: “We would not necessarily need to go through a full consultation process because to date agents have had the same opportunity to comment.”