FSA
Unregulated general insurance companies that failed to secure authorisation by 14 January 2005 will be allowed to continue trading for up to a year.
The Financial Services Authority (FSA) has confirmed that companies denied authorisation can continue to operate while their appeals are being processed. The decision means that consumers who buy insurance products from appealing firms will not be protected under the Financial Services Compensation Scheme.
Robin Gordon-Walker, spokesperson for the FSA, said: "The decision to allow companies to continue trading was made by the Government." He added that these companies would still be required to disclose their status to consumers.
