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FCA rejected 20% of authorisations last year
One in five firms that attempted to gain authorisation from the regulator were either refused, rejected, or withdrew their application after discussions with the Financial Conduct Authority (FCA).
The FCA announced this figure for the year ending December 2 2021.
The data suggests the watchdog was stricter on its authorisation process in 2021, as when it last reported it rejected one in every six applications.
In tandem, the FCA is rolling out a support programme for newly authorised firms following a pilot period. The regulator said the programme, which will be fully rolled out in 2022, would help ensure firms treat their customers fairly during the “crucial early years of their development”.
FCA chief executive Nikhil Rathi said: “The FCA has protected customers, enhanced the integrity of the UK’s financial system and promoted competition this year, despite the additional challenges of the pandemic.
“We have reformed the general insurance market, saving consumers £4.2bn over 10 years, led the transition from LIBOR and helped small businesses claim £1.2bn against business interruption insurance cover.”
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