Q I have heard that the Financial Services Authority is widening its regulatory functions.

Will this affect solicitors?

A The Financial Services Authority commences regulation of mortgage business on 31 October 2004 and general insurance on 14 January 2005.

From these dates it will be a criminal offence to undertake these business activities outside regulation.

Law firms that wish to do so must either be authorised by the FSA, or be able to rely on an exemption enabling them to carry on mortgage business and general insurance that is incidental to the firm's main business from within the designated professional body regime supervised by the Law Society.

Firms that wish to apply for authorisation can now apply for an application pack.

There are discounted application fees for early return.

For mortgage business, firms must apply by 31 March 2004 for an early application discount and no later than 30 April 2004 to be certain of being authorised in time.

For general insurance, the respective dates are 31 May 2004 and 13 July 2004.

Firms applying for both need to submit their applications by 31 March 2004.

Firms already authorised by the FSA wanting to undertake these activities will need a variation of permission.

In due course they will be contacted by the FSA with the details.

Firms seeking guidance and an application pack can contact the FSA, tel: 0845 605 5525 or visit the Web site: www.fsa.gov.uk/mgi.

Additional information can be obtained from the Law Society's professional ethics helpline, tel: 0870 606 2577.

Question of ethics is compiled by the Law Society's professional ethics guidance team.

Send questions for publication to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD; DX 19114 Redditch; tel: 020 7242 1222