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ABTA chief executive Ian Reynolds has warned agents to comply with its compulsory insurance training scheme or jeopardise the industry’s future self-regulation.

Reynolds faces crunch talks with the big four to diffuse a row over the cost of the scheme. The row - exclusively revealed by Travel Weekly (February 2) - erupted after it emerged the initiative, run by TTC Training, could cost the big four £400,000.

ABTA claimed victory last year when the Financial Services Authority withdrew its bid to regulate insurance sales through agents after admitting there was no evidence policies were mis-sold.

The training scheme was launched in November in the hope an industry-wide take-up would demonstrate a serious attempt by ABTA to maintain standards.

But Reynolds warned: “Unless we can show tangible evidence of improvement, the Treasury will be minded to bring in the FSA in 2007 when they review it.” He said evidence of mis-selling coupled with low consumer confidence would count against the trade.

Travel Counsellors chairman David Speakman said his company will not comply with the scheme in its present form, which could cost it £30,000.

He said: “ABTA has got it wrong, perhaps we should wait until it’s got it right.”

Co-operative Travel Trading Group chief operating officer Mike Greenacre is anxious to sort out problems so third-party regulation is not brought in, but added the current cost for the CTTG is “totally prohibitive”.

Thomas Cook director of trade relations Ian Derbyshire would not confirm compliance, but said: “We represent our views to the ABTA board.”

TUI UK has admitted it is in discussions with ABTA after reports it was going to back out, while MyTravel is in talks about how to implement the training cost-effectively.