The FSA has put pressure on insurers to ensure their secondary intermediaries are authorised by the start of statutory regulation.
In a letter to insurance company chief executives, FSA insurance sector leader David Strachan said that insurers needed to "consider the impact of regulation through the distribution chain".
Strachan asked insurers to decide if their intermediaries were to become authorised or appointed representatives.
The letter was prompted by the low response from secondary intermediaries. By 13 July only 3,781 applications had been received out of a total of 8,624 from the whole sector.
