The Financial Conduct Authority (FCA) has finally “fessed up” and publicly admitted to what everyone already knew. They are backed up and behind in processing authorizations for firms seeking their stamp of approval. Of course, this includes alternative finance platforms and P2P lenders seeking approval to offer the newly minted IFISA.
According to the FCA, in the last two years (ending in March) the governmental entity received approximately 37,000 applications from consumer credit firms. The agency explains that 87% have already been closed (99.6% within the statutory deadline). About 200 applications have not been “determined” within the 12 month period. The FCA estimates that “nearly 99%” of all applications will be closed by the end of this September. The delays were due to complex cases and how incomplete an application was following initial submission.
The FCA explained they prioritized new entrants as firms with interim permission could continue trading.
Following “feedback”, the FCA has instituted some changes to their process:
- We will tell you as soon as your application has been assigned to a case officer. All communication about your application will be handled by this person. If it subsequently proves necessary to assign your case to a different case officer, you will be told as soon as the change is made.
- All communications from you will be acknowledged within two working days.
- A substantive response will be given within 10 working days and, where this is not possible, an update will be sent within the 10 working day period telling you when you should expect to receive a substantive response from us.
- You will be given clear deadlines when asked to submit additional information.
- You will receive an update from the designated case handler on the current status of your case at least once a month.