On the deadlines for applying for FSA authorisation, Callum McCarthy warned: "We cannot guarantee that any applications for mortgages completed after 30 April can be turned round by the 31 October date; nor those for general insurance received after 13 July for the General Insurance day. Of course, our new streamlined processes… mean that we fully expect to turn many (straightforward) applications around faster – but if I were senior management, I would not want to take the risk."
"I would particularly like to stress the need for firms – such as many FLA members – that do not sell general insurance as their prime activity to act now…..to date the level of registrations from such firms is lower than expected…..
"All these rules are designed to result in a market which operates better, where competition is effective, and where competent and efficient providers of financial services will do well – as will their clients and customers. This is true of firms large and small. If we achieve this, a properly functioning market characterised by informed and responsible customers, clear information and efficient and responsible providers, the need for regulation will be much reduced. In drawing up the rules for mortgages and general insurance, we have taken account of the fact that on average their products – especially general insurance products – pose lesser risks for consumers than do complex long-term investments. We have therefore been able to be less intrusive. There is great advantage in regulation going with the grain of the market. That is what we are trying to achieve here, as in other markets.
