The FCA's has just published its 2023/24 annual report highlighting the main achievements over the past year. It shows that there has been significant improvement in authorisations, with 98% of cases being assessed within SLA. This is an increase from last year's figure of 89%. Read more here.
What is interesting is that the FCA also cancelled the authorisation of 1,261 firms, which has doubled from the previous year. A stark message to authorised firms out there to ensure they continue to meet the FCA's high standards. The regulator also used its powers to intervene against 34 firms last year, which is a huge uplift to 68% from the previous year.
Ship seemingly sailing smoothly? We know from very recent experience of supporting our clients here at Thistle Initiatives that this isn't always the case. We often see strategy in chaos. Ducks out of line. Ships stuck in rough waters. Luckily for most, we are able to provide the guidance and support needed to get back on course, realign priorities, and steer towards smoother sailing.
PSR authorisations, whilst still under target, increased to 87%, as the FCA report a small number of cases requiring additional time for more scrutiny or engagement. The regulator expects to build on improving this metric next year.
For payments firms, the regulator has a target to process 100% of complete applications within 3 months of the received date or within 12 months of the received date of an incomplete application. The stark difference between processing times (3 months vs. 12 months) should incentivise applicants to submit complete and accurate applications upfront. The importance of submitting a high-quality applications is paramount to minimise the administrative back-and-forth and expedite your firm’s progress toward its goals.
Much like preparing for an exam, you need to study and review all your material ahead of time. Thistle Initatives can provide you with all the study notes and practice exam questions, making sure you are set up for success.
As the regulatory landscape evolves, the challenges facing new entrants to the payments sector highlights the need for a multi-faceted approach. We seek to prepare firms for the regulatory process, helping to address any potential issues before submission. We offer clear guidance, advice and direction throughout the pre and post-application process, helping minimise the likelihood of any delays and ehancing the efficiency and effectivenss of the authorisations process.
For authorised firms, our ongoing ad-hoc advice, health-checks and guidance remain invaluable in such a dynamic and highly regulated environment. We ensure that your operations stay aligned with regulatory expectations, helping you navigate compliance challenges, adapt to changes, and maintain a strong standing with the FCA.