6230 registrations were from the primary insurance market and 6480 from the secondary insurance market, i.e. those who sell general insurance products alongside other goods and services. With regard to applications for authorisation the estimated breakdown was 4843 from the primary insurance market and 3781 from the secondary insurance market.
Comparable figures for the mortgage sector at the end of 13 July were 6536 registrations for an application pack and 3912 applications for authorisation.
Also, by the end of 13 July, 5980 letters had been sent to applicant firms indicating that the FSA was "minded to authorise" (MTA) them to carry out mortgage or general insurance business. Of these the sectoral split was mortgage 2715, primary insurance 2169, and secondary insurance 1096.
Each MTA letter sets out the scope of permission the FSA is minded to grant to the particular firm, including any requirements and/or limitations and sets out the list of individuals whom we are minded to approve to carry on controlled functions on behalf of the firm. The firms receiving MTA letters will be set to receive formal authorisation later this year unless the FSA reconsiders following significant change in their circumstances or new information emerging in the interim.
Additionally by end 13 July, 3987 applications had been received for variations of permission from already FSA-supervised firms who wish to conduct mortgage or general insurance business in addition to their current regulated activities. 2183 "variation of permission" (VOP) letters had been sent by the same date: 1721 in respect of mortgages (or mixed business) and 462 in respect of insurance.
27 MTA letters have been issued to firms wishing to operate a network with a mortgage or general insurance permission and included among those receiving VOP letters are 34 networks – making a total of 61 networks in all.
Sarah Wilson Director FSA High Street Firms Division said:
"These data show how much progress has been made since the mortgage and general insurance authorisation process started. The volume of MTA and VOP letters sent out is an indication of how far we have come, together with the industry, in the major exercise of bringing a uniquely large number of new firms into regulation at one time.
"13 July was, of course, an important milestone as the latest date by which we could guarantee to turn round a general insurance application before GI Day on 14 January next year. But we will do our best to deal with "late" applications that come in from now on. In many cases we turn round an application in considerably less than six months – so firms who wish to conduct general insurance business from next January should act now and submit their application to us as soon as possible. The same applies to any outstanding mortgage applications and with even greater urgency, as Mortgage Day, 31 October, is only three and a half months away."
