The UK Financial Conduct Authority has stated that it is seeking to speed up the process of removal of licenses handed out to firms that no longer hold them. In their opinion, companies with such licenses that don’t use them are increasing the risk of misleading consumers.
Businesses under FCA regulation are now required to prove the fact that they’re still carrying out broker activities. If not proven, the FCA has the power to cancel a business’s license within 28 days of the first warning.
UK FCA gained the new power due to a shift in the law, which helps the FCA to speed up the process so that the possibility of customer misinformation is lowered significantly.