Law firm calls on FSA to explain financial start-up delay

| June 7, 2010 | 0 Comments
”Law

City law firm Reynolds Porter Chamberlain LLP (RPC) is urging the Financial Services Authority (FSA) to explain why financial services firms are having to wait to receive authorisation.

According to RPC, the average number of weeks it takes the FSA to decide whether to authorise a company to provide financial services soared 71% in the last 12 months.

Prior to the credit crunch, the average application took just 7.5 weeks to receive the green light from the FSA.

A year ago, the time frame was 11.4 weeks but currently stands at 19.5 weeks.

The law firm is therefore calling on the FSA to explain why the process is now taking almost twice as long.

Jonathan Davies, Regulatory Partner at RPC, comments: “Delays in authorising new entrants into the financial services market damage consumers by reducing competition. They also damage Britain’s international competitiveness.

“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,” he concluded.

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