6,484 registrations were from the mortgage sector, 5,810 from the primary insurance market and 5,292 from the secondary insurance market, i.e. those who sell general insurance products alongside other goods and services. For applications for authorisation the breakdown was 3,891 from mortgage firms, 4,160 from the primary insurance market and 2,464 from the secondary insurance market.
Also, by the end of 31 May, 2,314 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 1,530, primary insurance 691, and secondary insurance 93.
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 31 May, 1,320 "variation of permission" (VOP) letters had been sent to already FSA-supervised firms who have applied to conduct mortgage or general insurance business in addition to their current regulated activities. 1,082 were in respect of mortgages (or mixed business) and 238 in respect of insurance.
Sarah Wilson, Director FSA High Street Firms Division, said:
"We continue to be encouraged by the level of engagement shown by the industry as reflected in the latest registration and application figures. Much progress has been made since the authorisation process got under way at the beginning of the year. The 31 May deadline for the application fee discount for general insurance business has now passed and the next milestone is 13 July the latest by which we can guarantee to turn round a general insurance application before GI Day on 14 January 2005. We expect applications levels from both the primary and secondary insurance sectors to climb towards the 13 July date."
