FSA today named the ‘hotspot’ sectors of firms selling insurance who have yet to apply for authorisation and warned them to do it now or risk losing business before regulation comes into force on January 14.
Whilst over 14,000 insurance firms have registered with the FSA to apply for authorisation, with less than five weeks before the start of the regime there are more than 4,500 that have still not applied.
Top three hotspot sector groups are motor dealers, removal firms and property managers. It is unclear how many firms that deal with protection and private medical insurance form part of the 4,500.
Sarah Wilson, Director FSA High Street Firms Division says: “Whilst some of the 4,500 firms, who have only registered, may have decided either to join a network or drop the insurance side to their business, we know some of these firms still plan to do business and are not ready. We also believe there are firms who haven’t even registered. These firms must understand the consequences of doing nothing.
“We want the industry to be ready by January 14 and as with mortgages, we’ll be doing everything we can to look at the applications and AR notifications we receive before January 14.”