The Complaints Commissioner has ruled in favour of the FCA over a complaint by a financial adviser unhappy about delays to their Approved Persons application.

The Commissioner said remedies offered by the FCA following delays to an Approved Persons application from a financial adviser were appropriate.

The FCA had acknowledged that it went over the statutory 90 day period for completing the review of the Approved Persons application and had offered an ex gratia payment of £100 for the delay.

The regulator took two months to assign the adviser’s application to a case officer.

The Commissioner, an independent body, said that while it was, “disappointing that it appears your application was not being actively progressed in this two month period”, the regulator had taken “appropriate” action by offering an apology to the adviser.

However, the complainant stressed that the FCA had “provided excuses” rather than valid reasons for the delays and also noted that a colleague who made a similar application at the same time was processed much quicker.

The FCA said that the delays were due to the firm’s prior involvement in DB pensions transfer advice and short staffing at a time when the Senior Managers & Certification Regime was expanded.

The Commissioner said the apology and small payment from the regulator was an appropriate remedy to the complaint, despite the adviser incurring significant expenditure as a result of the delay due to additional insurance premiums required.

The unnamed adviser had argued that this remedy was not sufficient to cover the firm’s losses as a result of the delay and asked that the Commissioner provide further information about why the firm was not entitled to more compensation.

The Commissioner Amerdeep Somal noted in his reply that Parliament has FCA immunity from being sued for damages, save in very limited circumstances. Therefore, while the Complaints Scheme does include provision for the payment of ex-gratia compensation, it does not pay out the kinds of compensation which a court might award in damages.

He pointed out that any ex-gratia payment that the FCA does award is not to cover and reimburse firms for financial losses, it is to recognise where "stress and inconvenience" may have been experienced.

The report from the Commissioner also recommended that the FCA, “continue to review and monitor its processes” to see if there is any way that application timeframes could be reduced.

The FCA has now offered a total award of £175 to the complainant.