FCA launches new commitments to firms applying for authorisation

"We have received feedback from some firms and industry bodies that the process could be improved by more contact from a case officer in the early stages of application"

Between 1 April 2014 and 31 March 2016, the regulator received nearly 37,000 applications for authorisation from consumer credit firms.

It reported that 87% of these applications have already been closed – 99.6% within the statutory deadline. However multiple firms have reported delays with the process.

The FCA revealed that 118 closed cases breached the deadline during this period. There are also around 200 open applications which have not been determined within 12 months.

However it estimates that nearly 99% of all applications closed by the end of September 2016 will be determined within the statutory deadline.

It says it is prioritising applications from new entrants, as firms with interim permission are able to continue trading, whereas new to market firms had to be authorised in order to begin trading.

The FCA says that following feedback, all communications will be acknowledged within two working days and a response will be given within 10 working days.

Firms will also will be given clear deadlines when asked to submit additional information and will receive an update from the designated case handler on the current status of the case at least once a month.

In its statement, the FCA said: "The length of time taken to determine applications can be impacted by a number of factors, including the number of complex cases from higher risk sectors, such as the commercial debt management and high-cost short-term credit sectors, or how incomplete an application is when it is submitted.

"When a firm applies for authorisation their application is allocated to a case officer. The case officer will then contact the firm to introduce themselves and explain how they can be contacted.

"We have received feedback from some firms and industry bodies that the process could be improved by more contact from a case officer in the early stages of application and by receiving additional updates on the progress of their application."