04 May, AtoZForex.com, Amsterdam — The most respectable license that a brokerage can obtain on the international Forex market is undoubtedly the FCA license, however the requirements for retrieving such a license is getting more difficult by the day. Due to a more cautious approach and policy of the FCA, the average waiting time for the retrieval of a brokerage license has almost been doubled. Reportedly, the initial waiting period for a firm to receive its operative license was set around the average of 10 weeks, while according to the latest research figures of UK’s National Audit Office it has been increased to 18.5 weeks for the last quarter of the year 2014.
So what factors caused FCA License Waiting Time to be doubled?
As the successor of the previously established FSA (Financial Services Authority) back at the start of 2013, the new regulator has experience difficulties that have resulted into the processing delays.
Firstly, it is evident that the increased number of firms that applies for the brokerage license is straining the performance of the FCA on processing new licensing. As the UK watchdog already has processed the licenses of 73.000 financial entities in its administration.
Secondly, according to the Financial Times the financial crises and collapse of the Britain’s financial system in 2008, has left a tremendous scar in the financial landscape. Therefore, it advocates the FCA to take a more cautious approach to the approval of any firm or individual that applies for its license.
Thirdly, the increasing figure of fraud cases and scandals has skyrocketed. Notwithstanding, these cases have affected the FCA, as it prompt the regulator with more investigative work, whilst force the regulator to become more strict on the processing of new licenses. Together with the rapid technological developments, frauds have been able to bolster their activities easier on the electronic market.
On top of these factors, is likely that the FCA will have to take another industry sub-sector into account, as the regulatory framework for binary options trading will be changed. An the outset this will mean that interest parties for a FCA license will even face longer waiting period for the retrieval of the highly demanded license.