However, the General Insurance Standards Council (GISC) has already notified insurance firms if they have any ‘extraordinary’ information on their files, before passing information over to the FSA.
The MCCB refused to discuss the nature of the information it had passed on to the FSA.
Brad Baker, head of communications at the MCCB, said: “We have been asked to provide raw data to the FSA. It is up to them how they use it.”
FSA spokesman, Rob McIvor, said: “The MCCB and GISC have both provided the FSA with a list of members who they don’t consider to be in good standing, or people they are wary of. If an application comes in, it is checked against this list. Those on it will be given extra scrutiny.”
He was however keen to stress that if a firm had dubious standing with the MCCB they would not automatically be barred from acquiring direct authorisation.
Mark Mountney, managing director of Premier Mortgage Management, said: “It is only right that the due credit process has a negative side to it. I think a firm would know anyway if they were not in good standing with the MCCB.”
The MCCB and FSA are allowed to exchange information freely according to Philip Ryley of TLT solicitors. He said: “My understanding is that regulators are free to discuss the information they hold, as long as that information remains confidential.”
