The FSA is to share Criminal Records Bureau checks with the Regulatory Decisions Committee at an earlier stage under a new protocol being drafted by the regulator.
The RDC hears appeals against enforcement, authorisation issues and supervisory decisions and reports to the FSA board.
The move was revealed in a letter from the Complaints Commissioner which was published last week.
The commissioner received a complaint against the FSA after an application to conduct regulated activity was turned down due to non-disclosure of criminal convictions.
The complainant referred the matter to the RDC, which ruled the non-disclosures were not deliberate and instructed the FSA to grant the authorisation.
Commissioner Sir Anthony Holland rejected the complaint but expressed concern that the FSA did not pass the relevant CRB information to the RDC until the day of the hearing.