FCA brings in consultants to tackle authorisation backlog as it races to recruit new staff
The UK’s financial industry regulator has brought in consultants to help it tackle the backlog in new authorisations, as it pushes forwards in its efforts to recruit new staff.
Speaking to the Treasury Committee, Sheldon Mills, executive director of the FCA, said the watchdog had hired consultants as it aims to cut the authorisation backlog, while it continues to recruit permanent staff.
“We have put in place measures both to recruit—we have consultants helping us while we are recruiting—and to get through some of that backlog,” Mills said
The decision comes as the FCA has faced criticism over delays to authorisations, which have seen financial services providers wait for up to six months to gain approvals.
Speaking to City A.M. an FCA spokesperson said the regulator has already recruited an extra 95 new authorisation staff since launching its recruitment initiative.
The FCA spokesperson said the FCA also has 45 consultants available to it, from two separate firms. However, the spokesperson was clear that any final authorisation decision must be made by a permanent member of staff.
In admitting the FCA is facing “operational challenges,” Mills said “the facts speak for themselves: there are delays.”
Mills also said the FCA should consider sharpening its focus to ensure its enforcement efforts achieve the aims it has as a regulator.
“In the future of financial services, we need to think about what we focus on in terms of enforcement and how that supports us in achieving our outcomes in the financial services sector,” Mills said.
“I wonder if sometimes we might be too broad in terms of our enforcement activity, and if we could be more focused,” he added.
The comments come after reports from P2P Finance News said the regulator is seeking to recruit 200 new staff.