A freedom of information request filed by law firm Reynolds Porter Chamberlain reveals authorisation for new 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 in the financial services sector for the last two years.
“Authorisation times rocketed after the credit crunch as the FSA started to scrutinise the business plans for financial services start-ups to an unprecedented degree.
“The delays were starting to improve even though the FSA was still applying the same level of scrutiny but that is no longer the case.”