Businesses will need to ensure they are compliant with FSA rules which will have a huge effect on those who advise on or arrange the sale of regulated mortgages and non-investment insurance products.
From N(M) day those selling, arranging or advising on regulated mortgages will be subject to FSA regulation. This includes mortgage lenders, administrators, advisers and arrangers many of whom will be regulated by the FSA for the first time. From N(GI) day those advising on or arranging the sale of non-investment insurance (eg buildings, contents, creditor, motor and term life) will also be subject to FSA regulation for the first time.
The FSA estimates that it will receive around 20,000 applications for new authorisation and around 5,000 applications for extensions from those already authorised. In order to ensure that they have the necessary authorisations from N(M) and N(GI) days firms must have made their application to the FSA by 31 March 2004 in the case of mortgage business and 1 June 2004 in respect of non-investment insurance business.
The regulations will require product information to be provided to customers before sale, after contract conclusion, at renewal and post-sale. Firms will also be required to comply with the FSA's solvency requirements and their high level standards which ensure that the firm and key individuals in the firm conduct themselves in a fit and proper manner
RegAssist will help clients (and potential clients) meet the challenge of the forthcoming regulatory changes and find solutions to the extra regulatory burden. The service will (among other things):
- Help with applications for FSA authorisation or variation of permission;
- Structure operations for effective compliance and minimum regulatory fees (or to avoid being regulated by the FSA);
- Provide advice on the FSA Rules;
- Provide practices and procedures for effective compliance.
RegAssist is led by corporate partner David Heffron, with assistance from John Thurwell and Paul Estlin.
