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FCA toughens barriers to authorisation as manager regime expands

FCA toughens barriers to authorisation as manager regime expands

Individuals and businesses which apply to become regulated by the Financial Conduct Authority will no longer receive intensive help if they are clearly not up to scratch, the regulator has warned.

'Historically, we have tended to work with applicant firms which do not meet our threshold conditions over extended periods to help them to do so,' the FCA said.

'We will now reject applications where it is clear they are inadequate and do not meet these conditions.

'So, while we will continue to work with applicants we believe are likely to meet the Threshold Conditions, we are more likely to refuse the applications of those that do not well within the maximum 12-month deadline.'

Examples could include a firm not using its permission in the previous 12 months or if cancelling its permission will protect consumers as well as an individual convicted of financial crime.

The FCA also said that it would increase the support it offers throughout the authorisation process, however.

The changes were revealed in discussion paper on authorisation issued by the FCA.

The proposals have been published ahead of a substantial widening of the FCA's regulation as a series of corporate functions are bought into the scope of the Senior Manager's Regime, which had previously only been applied to the banking sector.

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