FSA delays hold back UK market recovery.

June 8, 2010 - PRLog -- RPC claims that the average time it takes the FSA to decide whether to authorize a company to carry out financial services work leapt 71% in the last year, climbing from 11.4 weeks in Q1 2009 to 19.5 weeks Q1 2010.

Pre-recession, financial services firms only had to wait an average of 7.5 weeks - Q1 2007
Speaking to Mortgage weekly, Mortgage Strategy, Jonathan Davies, Regulatory Partner at RPC, said: “Delays in authorizing new entrants into the financial services market damage consumers by reducing competition.  They also damage Britain’s international competitiveness.

“The FSA needs to come clean on why it is taking longer and longer to authorize financial services firms.  Are they implying that they were not checking new applicants properly a year ago nor are they just dragging their heels?.

“If the FSA does not have the capacity to process applications properly then it should say so.”

According to Davies, after collapse of Northern Rock it was widely understood that the FSA would need to exercise greater due diligence but that it seems absurd that the time taken is still rising over three years later.

Chris Gardner of Mortgage experts  http://www.obligo.co.uk said “Mr. Davies of RPC right in questioning this -  particularly when most firms experiencing delays are much smaller, simpler operations and nothing like Northern Rock – its bizarre that the FSA appear to be using a very large sledgehammer to crack a very small nut. These delays will hold the market back and consumers will be left with little or no choice”

Elaborating on his findings, Jonathan Davies of RPC went on to say it is clearly in the interests of consumers for new businesses to enter the financial services market.
He went on: “Delays prevent financial services firms from starting up, depriving the business of revenue and the public of additional services.”

RPC points out that some firms could be delayed much longer than 19.5 weeks, because that figure is just an average.

He adds: “Some of these authorisation decisions from the FSA might be breaching the maximum six month statutory limit the FSA is under.”

The original article can be viewed with others http://www.obligo.co.uk/grapevine.html


Obligo limited Publishing Guidelines

Permission is granted to publish all or part this article electronically in free-only publications, like websites or e-zines, commercial or non-commercial (print requires a permission) as long as the resource box is included without any modification. All links must be active. A courtesy copy is requested on publication to chris.gardner@obligo.co.uk.


Article Title: At Last, UK buy to let mortgage are back

Authors URL:  http://www.obligo.co.uk

Author Name: Chris Gardner

Contact email: chris.gardner@obligo.co.uk

Author Blog: http://www.obligo.co.uk/blog


Resource Box must be included

About the author:

Chris Gardner (chris.gardner@obligo.co.uk.) is a director of Obligo, the UK mortgage and property portal. Obligo provide consumers with free tools and information helping them to make well informed mortgage and property decisions.

Read more about Obligo, other mortgage and property related articles at http://www.obligo.co.uk/grapevine,for free mortgage tools and information go to http://www.obligo.co.uk


About obligo

Obligo is a new mortgage business based around a revolutionary concept that will provide consumers with tools and information about UK mortgages, whilst retaining a human aspect to case underwriting and application management.

Obligo intends to change the way UK consumers approach mortgages. Obligo is a unique collaboration of information and resources from both the UK mortgage and property markets.

Features that have recently only been available through websites and entities are collectively presented to the consumer in a simple, easy and effective manner.

Real-time house price information, automated property valuations (AVM), consumer guides, market analysis and expert market commentary is available together with industry leading mortgage calculators and application tracking systems.

Obligo Ltd is a privately held company with a highly experienced and proven management team with proven track records in start-up acquisitions and sales in the mortgage and other sectors.

The founders have set a course in the changing world of financial services to deliver transparency and efficiency to the UK mortgage market .
for more information email chris.gardner@obligo.co.uk

# # #

Obligo is a free to use consumer website for UK mortgages. Obligo provides free property valuation, mortgage tools and access to mortgage experts. obligo engages with consumers and empowers them to make well informed mortgage and property choices.