FSA provisionally authorises Aon, Marsh and Willis
11/11/2004
The Financial Services Authority has today issued "Minded to Authorise" (MTA) letters to Aon Ltd, Marsh Ltd and Willis Ltd, the three largest insurance brokers in the U.K., in anticipation of the introduction of general insurance regulation in January 2005. The FSA is issuing this statement in the light of market and media interest, and at a time when many commercial organisations are considering renewing policies.
MTA letters are issued to firms based on the information that they provide to the FSA as part of their application for authorisation. If there is any subsequent significant change of circumstance affecting a firm's abilities to meet the FSA's prudential and conduct of business standards, the FSA may reconsider its decision before any Scope of Permission notice, which formally authorises a firm, is issued
Notes for editors
In December 2001 HM Treasury announced that the FSA's powers would be extended to include the regulation of general insurance sales and administration. This will take effect from 14 January 2005. The FSA has no powers at present in this area and currently broking business is regulated under a (non statutory) voluntary arrangement by the General Insurance Standards Council ('GISC').
The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection of consumers; and fighting financial crime.
The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.