Financial services firms have to wait on average eight weeks longer for FSA authorization than this time last year, according to City law firm, Reynolds Porter Chamberlain (RPC).
RPC says the average number of weeks for the regulator to authorize a financial services company jumped 71% in the last year alone; up from 11.4 weeks (Q1 2009) to 19.5 weeks (Q1 2010).
Some firms could have to wait even longer than this for the green light, the firm adds.
Jonathan Davies, regulatory partner at RPC, says: "Some of these authorization decisions from the FSA might be breaching the maximum six month statutory limit the FSA is under."
Before the credit crunch began, firms had to wait an average of 7.5 weeks in Q1 2007.
Davies says after the collapse of Northern Rock there was an understanding the FSA might want to exercise more due diligence.
However, he says it is "unacceptable" the time taken is still rising three years later, further damaging the economy.
Davies says: "Delays in authorizing new entrants into the financial services market damage consumers by reducing competition. They also damage Britain's international competitiveness... and deprive business of revenue and the public of additional services."
RPC points out some businesses could be waiting much longer than 19.5 weeks, because this is an average figure.
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