Unauthorised Schemes
The FSA has obtained a High Court ruling appointing provisional liquidators over three firms that the FSA considers were engaged in insurance activities without FSA authorisation. The firms offered BSkyB’s (Sky) satellite TV customers a form of extended warranty which constituted insurance. In return for an insurance premium of between £6.49 and £11.49 per month, the firms promised customers unlimited callouts covering all parts and labour costs. In the view of the FSA, the products described as warranties by the firms amounted to contracts of insurance and arranging and effecting contracts of insurance is a regulated activity. None of the firms had ever been authorised by the FSA. This is important to show that that any form of insurance or warranty scheme, however small the premium, will fall under regulated activity
