Mortgage regulation starts on 31 October 2004 and general insurance regulation begins on 14 January 2005. After those dates, it will be illegal for any firm that is not FSA authorised or an Appointed Representative of an authorised firm to continue doing mortgage or general insurance business.
To cope with the expected demand, the FSA has streamlined its authorisation process. From yesterday, firms are able to register for an application pack which contains re-designed application forms and plenty of guidance. The FSA will start accepting completed application forms from mid-January 2004.
Firms can register online for their application pack (www.fsa.gov.uk/mgi) or order one from a dedicated FSA Contact Centre on 0845 60 555 25.
Sarah Wilson, FSA Director of High Street Firms, said:
"Regulation is around the corner and all firms need to act now to ensure they are ready in time.
"Firms have two main choices – to be come 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. This gives them a couple of months to consider the form, work out what they need to do and get any help they need from us. We then expect to start receiving completed applications from mid-January.
"We are providing firms with lots of help throughout the authorisation process - from our dedicated website and contact centre to a countrywide series of roadshows.
"I would urge firms to apply early and electronically. We are expecting many thousands of firms to apply, and it will be in everyone's interests to avoid a last minute rush to get authorised."
How the FSA can help:
* For everything you need to know about your choices and to see the questions other firms are asking, visit www.fsa.gov.uk/mgi;
* Look at the sample application form on the website so that you can see the kind of information that you will need to start gathering and the plans you need to start making to be compliant by the time regulation starts;
* If you can’t find the answer to your question, call the FSA Contact Centre
* Meet the FSA face to face at roadshows around the country. See the website for details of dates and venues.
Key dates to put in your diary
* November 2003: Register for application pack online or by telephone
* Mid-January 2004: FSA due to start accepting application forms
* 31 March 2004: Deadline for mortgage firms wanting to qualify for early application discount
* 31 May 2004: Deadline for general insurance firms wanting to for early application discount
* 31 October 2004: Mortgage regulation starts
* 14 January 2005: General insurance regulation starts
