FCA accelerates firm authorisations while maintaining high standards
FCA Executive Director Sheree Howard affirmed the regulator is open for business and actively welcoming applications to the UK market. She stated the FCA is accelerating its authorisation process while upholding high standards.
Dispelling myths of slow approvals
The Financial Conduct Authority (FCA) is actively welcoming new applications, including from overseas firms, emphasizing its role as a 'gateway to growth' for the UK financial market.
Executive Director Sheree Howard likened the process to airport security, stressing that high standards are non-negotiable but must not become a barrier.
She addressed common misconceptions about lengthy wait times, revealing that over 99 percent of authorisation applications were determined within statutory deadlines in Q2 2025/26. Half of all new firm applications were processed in less than four months.
Howard also clarified that the FCA only 'stops the clock' for Senior Manager Regime and Change in Control applications, ensuring published determination times reflect total elapsed calendar days.
This transparency aims to provide applicants with a more accurate picture of end-to-end assessment times, countering the perception of arbitrary delays.
Technology and collaboration drive efficiency
The FCA is enhancing its authorisation process through technology and collaboration.
It has successfully tested generative AI to extract key facts from documents, aiming to integrate this for faster application decisions.
The regulator also provides a Pre-Application Support Service (PASS), offering free meetings with FCA experts to proactively address potential issues.
Executive Director Howard encouraged early engagement to help firms identify and resolve problems before they cause delays.
This collaborative approach, alongside initiatives like 'Minded to Approve' decisions and dedicated support for firms in the Regulatory Sandbox, aims to foster a new relationship between regulator and regulated.
A regulator's balancing act
The FCA's speech effectively communicates a proactive stance, balancing regulatory rigor with market efficiency and growth.
While the initiatives offer tangible improvements, the inherent tension between speed and high standards remains a continuous challenge.
This transparent and collaborative approach is a crucial step towards building greater trust and fostering a more dynamic UK financial services sector.