An adviser has raised concerns that the FSA’s online systems will not be able to cope with the volume of deauthorisation requests in the lead-up to 31 December, which could impact on firms’ fees next year.
Individuals seeking to cancel their regulatory permissions can only do so seven working days before they wish to stop giving advice, meaning all advisers who plan to stop giving advice on 31 December will have to notify the regulator on 19 December.
Advisers must apply to cancel their permissions through the FSA’s online notification and applications system.
Belmayne Independent Financial Services chartered financial planner David Bashforth is worried the ONA system will not be able to cope with the volume of applications on 19 December.
He says if the system crashes firms may be charged higher FSA fees and levies, which will continue to be assessed according to a firm’s headcount until April, when costs will be calculated based on income.
He says: “We know from experience if there is high demand on a website there is every likelihood there will be problems, which will come at the worst time of year with less staff over Christmas. It just shows the FSA has paid no thought to an issue that is so abundantly obvious. It beggars belief.”
An FSA spokeswoman says: “We are not concerned about potential system crashes and do not anticipate any problems with this.”