The FCA has published an update on its operating service metrics for authorisations timelines. This includes a view of operating service metrics from April to September 2022 (Q1 and Q2), along with performance for October to December (Q3) and January/February 2023.
The FCA has stopped reporting on the voluntary metrics for Approved Persons Status and Payment Services Agent notifications, commenting that it believes these are no longer appropriate, given additional checks at the gateway. For 2021/22, there were 8 Green metrics, 5 Amber and 6 Red, compared with 12 Green, 5 Amber, and 2 Red in January/February 2023.
The FCA says it is continuing its programme of investment in authorisations, and has recruited 125 additional permanent staff. Caseloads have fallen almost 60% from a peak of 12,500 in December 2021. Currently, at around 5,500, caseloads are approaching more sustainable levels, the FCA reports. Enhanced triage processes are reducing the time it takes to allocate a case officer and helping to determine straightforward cases more quickly.
The FCA continues to apply increased scrutiny at the gateway, including making a holistic assessment of firms’ business models. The proportion of firms not authorised remained high in 2022/23, at 1 in 5, up from 1 in 14 in 2020/21.
Areas not meeting targets in January/February 2023 were:
The FCA stressed that the increasing complexity of some cases means it will not always meet its target. In some instances, there are good reasons for allowing additional time for greater scrutiny or engagement, and decisions are sometimes delayed at the applicant’s request.
Links: https://www.fca.org.uk/news/statements/update-fca-authorisations-operating-service-metrics