New Quarterly Reporting Initiative by the FCA
On the 19th of May 2023, the FCA published their Authorisations operating service metrics 2022/23 Q4. As a consultancy firm, we have been paying close attention to the FCA’s move to enhance transparency by reporting these metrics on a quarterly basis and this latest report covers the first quarter of 2023. Here we highlight some of the FCA’s key findings and actions.
Addressing Past Delays and Implementing Improvements
During 2021 and 2022, applicant firms faced significant delays in the authorisation and registration. COVID-19 and the increase of remote of working could have resulted in delays to the processing of applications. Additionally, Brexit brought an influx of Temporary Permission Regime (TPR) applications, further increasing the volumes of applications on an already backlogged process.
We’ve noted significant improvements in the FCA’s performance since then, largely due to substantial investment and a 159-person boost in staffing, as well as the application of advanced technology and data analysis to automate processes.
Understanding the Current Metrics and Anticipated Improvements
The latest data reveals that the FCA continues to make steady progress. There were eight metrics showing strong performance, five presenting moderate results, and three needing further improvement. However, do note the inherent time lag in these metrics, and we anticipate further enhancements in the near future.
Increased Scrutiny at the Authorisation Gateway
The FCA is increasing the scrutiny of the application review process. In 2021/22, 1 in 5 new firms failed to secure authorisation, a rise from 1 in 14 in the previous year, a trend that persisted into 2022/23.
The decline in the processing of appointed representative applications for ‘approved person’ status in Q4 is attributable to a high volume of premature submissions lacking the necessary permissions. These were subsequently withdrawn post-deadline, along with their associated approved person applications. Without these, the performance would have been approximately 95% (amber).
Changes in Reporting: Aiming for Predictability and Transparency
To assist firms in predicting application processing times, the FCA now publishes quartile ranges of determination days per application category. This change, paired with the cessation of reporting voluntary metrics for approved persons and appointed representatives, indicates the FCA’s move towards higher transparency and robust checks at the gateway.
Addressing Complex Cases and Enhancing Guidance
Considering instances where targets were not met due to case complexity, the FCA is issuing more detailed guidance and testing newly digitised forms. Despite challenges, most applications are being determined significantly ahead of statutory deadlines, with high calibre and complete applications more likely to be processed swiftly.
Complyport: Your Partner in Navigating Regulatory Changes
Complyport has been a trusted partner to over 1000 financial services firms over the past 20 years, providing comprehensive guidance and support for FCA and EU authorisation processes. Our authorisation specialists, backed by more than two decades of experience, are adept at offering advice on best practices, making us a leading authority in the financial services sector.
As the FCA transitions towards these new reporting measures, Complyport stands ready to help firms adapt, and meet the regulatory requirements to gain authorisation.
How Can Complyport Help?
Our fully project-managed Authorisation Service includes:
- Pre-Application Consultancy: We understand your goals, listen to future ideas, apply for the correct regulatory permissions, and resolve issues pre-submission.
- FCA Application Pack Construction: We assist in drafting your regulatory business plan, preparing forms, creating financial projections, and tailoring our Compliance Monitoring Programme for your submission.
- Post Submission Queries: We are here to help with any issues or queries that arise after submission and guide you on dealing with the FCA.
- Compliance Documentation Provision: We provide all necessary compliance documentation, including manuals, a tailored Compliance Monitoring Programme, registers, and policies post-application submission.
- Ongoing Support: After authorisation, many firms continue to utilise our supportive services. for more information, please click here.
Our tailored solutions and expert guidance will empower your firm to meet regulatory requirements effectively. Contact Jan Hagen via email at jan.hagen@complyport.co.uk to book a free consultation.
