The FSA has begun to issue ‘minded to authorise’ (MTA) letters to 1,000 general insurance and mortgage brokers.
The firms receiving MTA letters are set to receive formal authorisation later this year unless the FSA reconsiders its decision following significant changes in the company’ circumstances or in the light of new information.
Formal notification of authorisation will be sent no earlier than November 2004 for general insurance firms, said the FSA.
Firms can use their MTA letters to demonstrate to customers and business partners that the FSA is minded to authorise them when regulation comes into effect.
FSA high street firms division director Sarah Wilson, said: “This first dispatch of MTA letters marks important progress in the major exercise of bringing an unprecedented number of new firms into regulation at one time.
“From now on, letters will be sent out regularly in the normal course of our authorisation work.
“In the course of our checking of application forms we have picked up some common recurring errors firms are making on application forms and we've published new guidance on that this week on our website to help firms avoid these.
The FSA said each MTA letter sets out the scope of the authorisation the it is minded to grant, including any requirements or limitations and sets out the list of individuals who it is minded to approve to carry out authorised functions for the company.
In the case of applications by principals, the MTA letter also lists appointed representatives and the individuals who the FSA is minded to approve to carry out authorised functions on their behalf.
