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Authorisations slow by two weeks

The time it takes for the Financial Services Authority to authorise new firms has increased by over two weeks since June last year.

A freedom of information request by law firm Reynolds Porter Chamberlain reveals authorisation for new financial services companies took an average of 19.6 weeks in the first three months of 2012.

RPC says this represents a 13% increase since June 2011, when the average authorisation period was 17.3 weeks.

Steven Francis, partner at RPC, says: “Having to wait an inordinately long time for FSA approval has been a real bugbear for financial services over the last two years.

“Authorisation times rocketed after the credit crunch as the FSA started to scrutinise the business plans for start-ups to an unprecedented degree.”

He adds: “The delays were starting to improve even though the FSA was still applying the same scrutiny, but that is no longer the case.”

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