There have been two fairly consistent topics of conversation for us and our clients this year. The first being, "isn't the recruitment market really tough at the moment?" and the second "why are FCA applications taking so much longer than usual?" This article sets out the stark reality of the Financial Conduct Authority's current situation.
It's fair to say that people were understanding of the reasons for the delays in approving applications last year at the start of the pandemic, but there are clear signs that this backlog has just never been caught up. And this is at a time when the FCA is talking about a tougher authorisation application gateway with greater scrutiny of applications.
The FCA's rather interesting solution to one area of its backlog is to outsource some change of control approvals to third party law firms. Maintaining consistency of how change of control applications are considered is going to be key to this succeeding. Corporate groups who undergo frequent changes of control often build a rapport and a process with the FCA to make a frankly burdensome process simpler. It will be important for the FCA to ensure that an outsourcing of these approvals does not lead to greater friction.
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This information is for general information purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given. Please contact us for specific advice on your circumstances. © Shoosmiths LLP 2025.