The FSA acted within days of being tipped-off on the activities of unauthorised underwriting agency Tribune Risk and Insurance Services.
FSA spokesman David Eacott said investigations started at the beginning of December, with liquidator PricewaterhouseCoopers appointed on 10 December following a hearing at the Scottish Court of Session in Edinburgh.
He said Tribune Diamond policyholders had not been affected by the FSA warning as some underwriting remained in place. All other Tribune policyholders have been advised to seek replacement cover as soon as possible.
Sources in Scotland said that since the FSA gave the warning, Scottish brokers have seen a surge in business as Tribune policyholders try to find replacement cover.
