FSA publishes details of first non-authorisations
They have been rejected as a result of failing to meet one or more of the Threshold Conditions for authorisation set out in the Financial Service and Markets Act. The names of the affected firms have been posted on the FSA website at http://www.fsa.gov.uk/authorisation/application_refusals.html. – they are the first four firms currently listed with a 28 October date for the Final Notice summary.
As a result of its scrutiny of mortgage applications the FSA found that 75% of the new applications raised regulatory issues requiring further enquiries and half required substantial investigation. Wherever applicable the firms were required to take remedial action before permission was granted. In addition, nearly 300 mortgage firm new applications were investigated on a thematic basis, and – where there was evidence that the firms would not be compliant with FSA rules by M-Day – the FSA required remedial action. 210 firms so far have either withdrawn from the authorisation / variation of permission process or received a final notice of refusal. Details of further Final Notices of refusal of authorisation will also be placed on the website.
“We are operating a parallel and equally robust process with respect to applications for the new general insurance regulated activities and we will publish on the Website details of any decisions not to authorise with regard to firms in this sector in due course. ”