The FSA has said that it has kept more than 600 unsuitable mortgage and general insurance (M&GI) firms out of the industry since the start of regulation.
The FSA records show that the majority of these either withdrew or were refused permission to conduct business at the first stage of the authorisation process.
Andrew Honey, head of Insurance in the small firms division of the FSA said: "This is good news for the industry. It is essential that unfit firms are kept out to ensure there is a level playing field for the benefit of intermediaries. It also provides crucial protection for consumers. In order to achieve this, the FSA has a robust authorisations process and is willing to defend its decisions."