IFA complaint over FSA approval delays rejected

An IFA whose application to the Financial Services Authority (FSA) for re-authorisation was delayed then rejected has had his complaint turned down.

The adviser, who worked for network 'A' until November 2009, attempted to apply for re-authorisation with firm 'B' but complained the process took so long it led to the loss of his client bank, and deprived him of his right to work.

He also complained the FSA put him in a position where he was unable to challenge the regulator's eventual decision to reject his application.

However Complaints Commissioner Sir Anthony Holland said the delay was necessary because the FSA was conducting enforcement action against network 'A' and needed to find out whether the adviser, and many of his colleagues, met its fitness and propriety requirements.

He wrote: "In this case, it appears the FSA understandably wanted to complete its further enquiries before assessing fully your application.

"This does not appear to be an unreasonable position for the FSA to adopt given the concerns it had about network A."

Regarding the eventual rejection of the application, which was never challenged by the adviser due to the costs involved, he again decided the FSA had done nothing wrong.

"Although you were clearly given instructions on how you could challenge this it appears that you decided not to do this."

He concluded: "In the absence sufficient of [sic] evidence to show that the FSA failed to discharge its duty under the Act, I am unable to uphold your complaint."

Timeline:

2 November 2009: Adviser submits application to perform controlled functions under the approved person's regime

30 November 2009: Network A submits notice to cease to perform controlled functions

9 March 2010: Firm B withdraws its support for the adviser's application

8 April 2010: FSA's Regulatory Decision Committee rejects adviser's application and issues Warning Notice

8th June: Adviser's legal representative inform FSA they will not contest case before RDC

10th June: Deadline by which any representations had to be made to the RDC