The FSA says simple errors by firms completing application forms for authorisation to continue writing mortgage and general insurance business are causing delays.
To deal with the problem, which is slowing down the regulator's processing of the 5,000 applications received to date, the FSA is posting on its website a list of the most common mistakes that intermediaries are making and a series of tips for completing applications successfully.
It says firms are failing to notice the “000” outside income boxes, inflating their income by thousands of pounds. Another mistake is sole traders applying to be an approved person.
Firms are applying for individuals to have every controlled function when most of these functions do not apply to most firms. These applications are being delayed while the FSA establishes what is needed.