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.