FSA delays hold back UK market recovery.

Financial Services Authority (FSA) under fire as authorisation delays from continue to hamper market recovery, says City law firm Reynolds Porter Chamberlain LLP (RPC).
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June 8, 2010 - PRLog -- RPC claims that the average time it takes the FSA to decide whether to authorize a company to carry out financial services work leapt 71% in the last year, climbing from 11.4 weeks in Q1 2009 to 19.5 weeks Q1 2010.

Pre-recession, financial services firms only had to wait an average of 7.5 weeks - Q1 2007
Speaking to Mortgage weekly, Mortgage Strategy, Jonathan Davies, Regulatory Partner at RPC, said: “Delays in authorizing new entrants into the financial services market damage consumers by reducing competition.  They also damage Britain’s international competitiveness.

“The FSA needs to come clean on why it is taking longer and longer to authorize financial services firms.  Are they implying that they were not checking new applicants properly a year ago nor are they just dragging their heels?.

“If the FSA does not have the capacity to process applications properly then it should say so.”

According to Davies, after collapse of Northern Rock it was widely understood that the FSA would need to exercise greater due diligence but that it seems absurd that the time taken is still rising over three years later.

Chris Gardner of Mortgage experts  http://www.obligo.co.uk said “Mr. Davies of RPC right in questioning this -  particularly when most firms experiencing delays are much smaller, simpler operations and nothing like Northern Rock – its bizarre that the FSA appear to be using a very large sledgehammer to crack a very small nut. These delays will hold the market back and consumers will be left with little or no choice”

Elaborating on his findings, Jonathan Davies of RPC went on to say it is clearly in the interests of consumers for new businesses to enter the financial services market.
He went on: “Delays prevent financial services firms from starting up, depriving the business of revenue and the public of additional services.”

RPC points out that some firms could be delayed much longer than 19.5 weeks, because that figure is just an average.

He adds: “Some of these authorisation decisions from the FSA might be breaching the maximum six month statutory limit the FSA is under.”

The original article can be viewed with others http://www.obligo.co.uk/grapevine.html


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Article Title: At Last, UK buy to let mortgage are back

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Author Name: Chris Gardner

Contact email: chris.gardner@obligo.co.uk

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About the author:

Chris Gardner (chris.gardner@obligo.co.uk.) is a director of Obligo, the UK mortgage and property portal. Obligo provide consumers with free tools and information helping them to make well informed mortgage and property decisions.

Read more about Obligo, other mortgage and property related articles at http://www.obligo.co.uk/grapevine,for free mortgage tools and information go to http://www.obligo.co.uk


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for more information email chris.gardner@obligo.co.uk

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