Intermediaries are being urged to apply early for authorisation
General insurance intermediaries can now register to apply for authorisation from the Financial Services Authority (FSA) in readiness for statutory regulation, which will be enforced from January 2005.
The FSA's director of high street firms, Sarah Wilson, said it could take the regulator up to six months to consider applications, so it is imperative that firms apply early and do not risk being unauthorised when the rules are imposed.
Discounts are available for firms that apply for authorisation by 31 May 2004. Completed application forms will be accepted by the FSA from mid-January 2004.
The FSA is predicting that 20,000 firms will apply for authorisation, with remaining intermediaries becoming appoi nted representatives (ARs) of authorised firms. Wilson said the choice of whether or not to become an authorised firm or AR should be an "entirely commercial decision".
"Firms have two choices - to become directly authorised by the FSA or to become an appointed representative of an authorised firm, known as a principal. Firms that want to become directly authorised by the FSA can register now to receive their application packs. We expect to start receiving completed applications from mid-January," said Wilson.
Intermediaries can register online for an application pack at www.fsa.gov.uk/mgi or through a newly launched contact centre on 0845 60 555 25.
