Law Changes To Mean Massive Workload Increase For FSA

by Robin Pilgrim, LawAndTax-News.com, London

01 May 2003

The UK's Financial Services Authority (FSA) has revealed that it is bracing for approximately a 50-fold increase in the number of companies applying to be authorised in 2004, as result of legislative changes which have extended the regulator's remit.

Mortgage lenders in the United Kingdom will become subject to regulation by the FSA in October 2004, with general insurance intermediaries due to come under the financial services watchdog's umbrella the following year.

Speaking to the UK media, John Tiner, the FSA's consumer, investment, and insurance managing director revealed that:

'We anticipate dealing with some 40 to 50 times as many applications for authorisation in 2004 than we would expect to handle in a normal year.' He continued:

'We plan to streamline the authorisation process significantly, to make it as straightforward as possible, but it will still be much easier for firms, as well as for us, if they apply on a timely basis.'

According to reports, the changes are expected to cost some £33 million. However, it is hoped that this will be recouped through application fees.

Recommended