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FSA authorisations taking 71 per cent longer

The average time the FSA takes to authorise a firm has increased 71 per cent in the last 12 months, according to City law firm Reynolds Porter Chamberlain.

RPC says that the average number of weeks it takes the FSA to decide whether to authorise a company to do financial services work jumped up from 11.4 weeks in Q1, 2009 to 19.5 weeks in Q1 this year.

It adds that before the credit crunch, in Q1, 2007, firms only had to wait an average of 7.5 weeks.

RPC regulatory partner Jonathan Davies says: “The FSA needs to come clean on why it is taking longer and longer to authorise financial services firms. Are they implying that they were not checking new applicants properly a year ago or are they just dragging their heels?

“If the FSA does not have the capacity to process applications properly then it should say so.”

Many of the 240 ex-Park Row advisers are still waiting for reauthorisation and have been unable to service clients since last November.

Davies adds: “Some of these authorisation decisions from the FSA might be breaching the maximum six month statutory limit the FSA is under.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Incompetent Regulators Awards Team 7th June 2010 at 12:51 pm

    In 2005 it took them 12 months to complete my 6 man company change of registration. With about 15 people behind their scenes dealing with this registration was nothing short of rediculous. The FSA is a job creation scheme for mongs!

  2. Julian Stevens 7th June 2010 at 1:04 pm

    This is a sorry indictment of the FSA’s administrative procedures. By making into an ever more complicated obstacle course the number of hoops and hurdles that have to be jumped through and over, the whole system gets so bogged down in minutiae and uncertainties over interpretation as to what is actually required that eventually it all but seizes and grinds to a halt.

    But never mind ~ this must be why Adair Turner is forever demanding more staff, more money and more power. And so the monster grows exponentially in all but efficiency and effectiveness like a cancer of self-serving bureaucracy.

    Consider Pat McFadden’s foreword to the Statutory Code of Practice For Regulators:-

    Our expectation is that as regulators integrate the Code’s standards into their regulatory
    culture and processes, they will become more efficient and effective in their work. They will
    be able to use their resources in a way that gets the most value out of the effort that they
    make, whilst delivering significant benefits to low risk and compliant businesses through
    better-focused inspection activity, increased use of advice for businesses, and lower
    compliance costs.

    Rather a shame then that the FSA resolutely ignores and/or disregards the very Code by which it is supposed to operate.

    Write to your MP and draw this to his or her attention.

  3. Derek Snowden 7th June 2010 at 1:11 pm

    Why is anyone suprised by this civil service mentality? the conservatives said that if they got into power they would disband the FSA. So all that is happened is that these civil servants who work for the FSA have decided to throw their dummies out of their prams and go slow.

  4. A shambles created by a ‘new’ more intrusive supervision regime introduced after Hector Sants said ‘be very afraid of the FSA’ and decisions made by the ‘permissions’ department which in the case of Park Row is backed by flawed ‘intelligence’ produced by a major accounting firm that farmed out the file checking work to a company which, on the face of it, doesn’t appear to know what it is doing.

    If anyone thought regulation couldn’t get any worse they are in for some surprises in future, particularly people like IRAT above.

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