MIGI 4.1 Introduction

Firms that want authorisation to carry out regulated activities will need to:

1. (1)

   apply to us for permission to carry on one or more regulated activities; and

2. (2)

   seek our approval for any individuals within the firm that carry on controlled functions to become approved persons (see Part I, Chapter 6).

Our assessment at the authorisation stage aims to allow only those firms and individuals satisfying the necessary criteria (including honesty, competence and financial soundness) to engage in a regulated activity. These criteria are called the threshold conditions.

The Authorisation manual (AUTH) sets out the background to the authorisation and approval processes and provides guidance on how we authorise firms. This chapter explains in general terms what we will consider in deciding whether to authorise a firm.

We have designed a new application form and a streamlined process for mortgage intermediaries applying to become authorised from 31 October 2004 and insurance intermediaries applying to become authorised from 14 January 2005. For a practical explanation of this process see our factsheet Becoming an authorised firm (on our website at www.fsa.gov.uk/mgi/factsheets/fsa_4_direct_p5.pdf). You can find the application form for authorisation at www.fsa.gov.uk/mgi/applying_for_authorisations.html.