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GI-Day welcomes 40,000

14 January marked the extension of the FSA’s regulatory constituency to the general insurance market, which is responsible for some 77 million policies annually. Keyfacts documentation, now mandatory, should make it easier to compare offerings by firms and highlight “significant and unusual” exclusions. Firms that were timely in filing their applications for authorisation (13,291 were successful) or variation in permissions (4,839 passed muster) will come under both the Financial Ombudsman Scheme (FOS) and the Financial Services Compensation Scheme (FSCS). Approximately 22,000 appointed representatives have also been brought within the FSA’s remit. On GI-Day a further 941 firms’ applications were still under consideration. These “interim-authorised” entities will be able to continue to sell insurance while they wait for a final decision; although covered by FOS they do not come under the FSCS. Questioned about this exclusion on BBC Radio Four’s Money Box programme, Clive Briault, FSA Managing Director, Retail Markets said, “Well we’ve had to take a very difficult balance there and make a decision. I should say those firms who are interim-authorised are obliged to inform consumers of their status so it’s possible for consumers to exercise a choice.” Products which do not come under FSA regulation are travel insurance, which is sold as part of a holiday package, and extended warranties on electrical goods.