According to the Financial Services Authority, more than 600 unsuitable mortgage and insurance companies have been kept out of the industry since the start of regulation. Their records show, that during the first stage of the authorisation process, about 550 mortgage and general insurance companies either withdrew or were refused permission to conduct business. At the second stage of authorisation, where companies can appeal to the regulatory decisions committee, around 60 companies withdrew or were refused. The tribunal is the third and final stage of the process, and 11 companies have either withdrawn or have been refused permission to conduct business.
Our view:
Keeping unsound businesses out of finance is good for the consumer.