Former Park Row advisers still waiting to gain reauthorisation are being summoned by the regulator to attend interviews.
In a letter in response to an adviser’s enquiry, seen by Money Marketing, FSA chief executive Hector Sants admits the ongoing KPMG past business review has caused a significant delay in reauthorising advisers.
It says: “In some cases, where we believe the progress of an application can be more effectively dealt with by assessing an individual face to face, we may request the attendance of a candidate for interview. Such interviews are conducted on a voluntary basis and are, by their very nature, confidential. I can confirm that a small number of former Park Row advisers have attended such interviews.”
Park Row, which had 240 advisers, was wound up in November 2009. The FSA will not disclose how many advisers have been called for interview or how many have failed to get reauthorisation.
A law firm, which wants to remain anonymous, says it has taken four cases where authorisation applications were initially rejected by the FSA to the regulatory decisions committee and overturned all four cases.
KPMG, which was given the job of reviewing past business of Park Row advisers, is understood to have outsourced the work. KPMG was unavailable for comment.
An FSA spokeswoman says: “There is a statutory limit of up to three months when somebody applies for authorisation, whether they have been authorised before or not. We can extend that if there are concerns which mean we need to take more time. In any authorisation process, if we get to the point we need to interview a candidate, we will do.”