The FCA’s authorisation process has a huge impact on new firms that are looking to invest in the UK and existing firms looking to make changes. New firms cannot operate and generate revenue, and existing firms may also be impacted financially and certainly from an efficiency perspective. If we compare our authorisation process with that in the Netherlands or the Republic of Ireland, we see statutory timelines of 13 weeks or 113 days respectively. In the UK, the regulator has a 6-month statutory timeline, but for some types of applications can pause or ‘stop the clock’ extending the time period for obtaining approvals. If we wish to be competitive and encourage new entrants to the market or even allow for a simple change in permissions, we need to be more ambitious about authorisations.
We are proud to operate the largest networks of independent regional insurance brokers in the UK. A key function we provide is regulatory compliance which includes authorisations under the senior managers certification regime. We have seen some improvement in 2024 however, the average time to receive approval decisions is 12 months placing huge strain on our members and inhibiting their growth. A more ambitious statutory timeframe would be hugely welcomed and bring the UK in line with some of its European neighbours.
BIBA gathered intelligence from members on challenges faced with the existing authorisation regime. The information was collated and submitted to the FCA, which included seven key recommendations for consideration. The regulator responded with feedback and set out the improvements they have been making.
- A major programme of work has been underway to transform and move authorisation forms to a new IT platform
- Determine applications using a Threshold Condition test
- The forms transformation work started with a new version of Form A
- Continue to digitise more forms and processes, including a new Sensitive Business Names Form, a new Firm Details Attestation Form and a new Form B
- New forms give clearer guidance and, where possible asking for all information required for an assessment within one form
- Continuing to provide forms in Word or PDF versions on their website
- Looking at ways in which the FCA team could be more proportionate when working with firms, ensuring follow-up questions are relevant to the application
BIBA will continue with the momentum and is arranging a roundtable event with the FCA and BIBA members, where the regulator will help members better understand their expectations.