The FCA doubled the number of firm authorisations it cancelled in the 2023-24 financial year.

It cancelled the authorisation of 1,261 firms over the year, according to its annual report out this week.

The regulator also used its powers to intervene against 34 firms who caused serious concerns, a rise of 68% over the previous year.

According to the annual report, the FCA was also able to identify at an early stage the potential risk of a firm failing, with 52.8% identified in the 12 months before failure (as of Q4 2023).

It also collected financial resilience data from 23,000 regulated firms.

As part of its crackdown on financial crime, the regulator charged 21 people with financial crime offences which is the highest number of charges it has made in a single year.

In 2023, it secured 9 freezing orders, 6 more than in 2022, and restrained £21.1m in assets of individuals under investigation.

The FCA also improved the speed of its authorisation process during the year. In 2023-24 98% of cases, including applications by wholesale market firms, were assessed within statutory deadlines, up from 89% in Q1 of 2022/23.

Nikhi Rathi, CEO of the FCA, said: “As we have shown this year, we are fully committed to both supporting and balancing the different needs of consumers, businesses, and the wider economy, enabling all to flourish.

“We recognise the importance of providing an effective and efficient authorisations service if we want the UK to be the best place in the world for financial services to thrive.

“We continue to play a leading role internationally by shaping the global standards on crypto, sustainability, and non-bank finance to name but a few.”

The regulator also addressed the advice gap in its annual report.

Ashley Alder, chair of the FCA, said that the regulator’s plans to help close the advice gap would include an assessment of commercial viability, affordability and “other trade-offs” as the regulator seeks to widen personalised financial advice away from just a “minority of wealthier investors.”