General insurance perimeter in tact, FSA finds

In a review of 1,700 general insurance intermediaries – both primary, where sale of insurance is their main business, and secondary, when it is ancillary – the FSA found only two primary and 14 secondary firms that were deliberately breaking the law. When the perimeter infractions were due to honest mistake, the FSA sought to help firms either to cease selling insurance, become authorised or restructure in order to avoid the need to become authorised. The regulator also took steps – unspecified – to stop other less cooperative firms from continuing to do business. “We have been impressed with the level of understanding of the new rules in both the primary and secondary insurance markets,” said Clive Briault, FSA Managing Director for Retail Markets.