The FSA says it aims to achieve its voluntary standard of ensuring 85 per cent of advisers are authorised within five days of receiving applications, despite the expected large influx of Honister re-authorisations.
Speaking to Money Marketing, FSA director of authorisation Victoria Raffe said the regulator had met the voluntary standard for the last year and hopes to continue to reach the benchmark even with the large influx of expected re-authorisations.
She says: “Our voluntary target is to achieve 85 per cent of advisers being authorised within five days. It is something we have chosen to do and we have been meeting that standard for the last year.
“The chances of us receiving 900 applications in one go are pretty small but we would still aim to meet that target regardless.”
Raffe added the biggest barrier to applications not being passed through in time was firms failing to complete their applications fully.
“It is when firms do not evidence fully that the advisers are fit and proper, that is the biggest barrier to authorisations going through quickly.”
Although there has been calls from the industry to fast track adviser applications, the FSA says it will not “cut corners”.
The FSA last week blocked the bulk transfer of Honister Capital advisers to another network due to concerns about historical liabilities and firms’ readiness for the RDR.
“For us the important thing is the outcome, we will not cut corners in terms of the process unless we are sure that it is the right one and we have covered all of the consumer protection angles that we are looking for.”
Raffe said the FSA would aim to complete the large number of adviser applications in the standard five days and would not need to recruit extra resources.
The FSA’s authorisation department employs around 40 people, although this team deals with all areas of financial services.