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The FCA is being approached by regulatory experts due to backlogs in the provision of regulatory permissions, which is supposedly caused by changes in the middle and senior management at the financial authority.
As the compliance community is frustrated with the delays in getting authorization from the Financial Conduct Authority, the situation was called “unacceptable” in a note sent to the members of APCC (Association of Professional Compliance Consultants) on November 24.
The note stated, “As members of a reputable professional body, we pride ourselves on the quality service we provide our clients. Not only do these delays stifle and frustrate our clients, but they may also be perceived as a reflection of our members’ ability and value.”
It also added that the APCC is set to hold an urgent meeting to discuss the backlog with the FCA’s executive director of authorizations.
“The FCA doesn’t answer to us, nor can we claim to have a hotline to the authorizations division where we can plead for early allocation/consideration of a particular application. To some extent, it is what it is… Whilst the current situation may be intolerable and unacceptable, we can’t just take our custom elsewhere. So, we ask for your continued patience.”
According to Financial News, one of the clients looking for authorization has been waiting for an officer for eight months, along with “real delays” in the applications for appointed representative status.
As per the latest business plan of the FCA that was released in July, the regulator planned to make it tougher for firms to gain authorization. This was after the FCA received criticism for approving firms like the mini-bong provider London Capital and Finance as a regulated firm, leading retail investors to lose hundreds of millions of pounds.