The FSA has begun its crackdown on firms on the ‘perimeter' who are breaking...

The FSA has begun its crackdown on firms on the ‘perimeter' who are breaking the law by conducting unauthorised general insurance business.

The regulator's 'perimeter team' has already visited over 500 firms in Birmingham, Derby, Leicester and Nottingham. Other areas of the UK will be visited soon, the FSA said.

The FSA's activities include visits to both primary intermediaries and secondary intermediaries, including motor dealers, property managers, travel agents, high value retail outlets and removal and storage firms.

Clive Briault, FSA managing director of retail markets, said: "Tracking down firms operating outside our regime is a major priority for the FSA. This is vital to protecting consumers since they do not have access to statutory redress and compensation if they deal with unauthorised firms.

"At the same time we urge consumers to check the status of the firm they are dealing with before conducting business with them. Details of authorised firms can be found on our web site."

The FSA will be publishing the detailed findings of the general insurance perimeter work later this year.

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