Does lack of FSA authorisations suggest faltering recovery?
01 September 2010 at 15:16
The decline in the number of Financial Services Authority (FSA) authorisations in the UK suggests that the UK's economic recovery may be faltering slightly, one sector analyst has claimed.
According to IMAS, the sharp drop in the number of FSA authorisations in the second quarter of the years suggests that many organisations are failing to get assistance with the process and are therefore struggling.
"Notwithstanding recent headline merger and acquisition deal announcements, the UK financial services industry's recovery appears to be faltering," the organisation explained.
It added that there is "continued confidence" in the financial investment sector, however, specifically among corporate finance, fund management and hedge fund management businesses, which may suggest an upturn in confidence and future authorisations.
Recently, Vicky Hartley, writing for Mortgage Solutions, noted that there have only been nine sale and rent back authorisations since July 1st when the sector became full regulated, and only one in the last five weeks, which she believes may be due to companies not seeking full authorisation or needing help to do so.
Posted by James Harrison