FCA cancelled 201 authorisations in 2022
The Financial Conduct Authority (FCA) cancelled the authorisation of 201 firms this year, claiming that they failed to meet minimum standards.
The FCA had previously reported that 197 regulated firms lost their permissions between 31 March 2021 and 31 March 2022.
The City watchdog also removed or amended more than 8,000 “potentially misleading” adverts in 2022 – 14 times more than in 2021.
The regulator said that the rise in cancelled permissions and adverts reflects its new data-let approach, which aims to identify and deal with problem firms more quickly.
Over the course of this year, the FCA has cracked down on firms which were not using their permissions, including both directly authorised firms and appointed representatives. This included IFISA manager Godwin Finance, which lost its regulatory permissions in May 2022.
“This has been a difficult year for many people who have been struggling with the cost of living,” said Nikhil Rathi, chief executive of the FCA.
“So it is all the more important that financial companies meet our standards and treat their customers fairly, particularly those who are facing financial difficulties.
“As well as protecting consumers and supporting the vulnerable, we have been dealing with unprecedented market events and reviewing our rules to ensure our regulatory regime is fit for the future. We are working on reforms to the way companies are listed in the UK, which will support growth and competitiveness and continue to support innovative and fast-growing companies.”
Read more: FCA expands work with newly authorised firms