The changes proposed by the regulator in its latest consultation will give greater responsibility for decision to senior members of FCA staff from its Regulatory Decisions Committee (RDC) to its Authorisations, Supervision and Enforcement Divisions.

The proposed changes aim to streamline decision making on authorisation applications and specific supervisory and enforcement decisions.

The regulator aims to publish a policy statement with the final decision on the changes in November.

The RDC is a committee of the FCA Board. At present it takes certain decisions on behalf of the FCA. Under the proposed changes, some decisions would now be made but FCA staff including imposing a requirement on a firm or varying its permissions by limiting or removing certain types of business; making a final decision in relation to a firm’s application for authorisation or an individual’s approval that has been challenged; the decision to take action, after the action is challenged by the firm, in removing a firm’s permissions because a firm does not meet the FCA’s regulatory requirements; and the decision to start commencing civil and/or criminal proceedings.

Some decisions in relation to contentious enforcement cases, where the FCA is proposing a disciplinary sanction or seeking to impose a prohibition order would be retained by the RDC.

The changes have been proposed as part of the FCA’s transformation process in order to streamline FCA decision-making and governance so it can move more quickly to stop and prevent harm faster.

The regulator has come under fire in recent months for failing to act quickly enough in its handling of London Capital and Finance (LCF).

Last month the Treasury Committee has called for a change in culture at the FCA in order to protect consumers and financial markets in its report into the regulator’s handing of LCF.

Some 11,625 investors lost savings worth a total of £237m when LCF collapsed with the majority so far not compensated by the FSCS due to questions about whether their investments were regulated or not.

Emily Shepperd, executive director of authorisations at the FCA, said: “The proposed changes will allow us to be more efficient by making best use of the breadth of expertise across the FCA and by putting certain decisions back to the subject matter experts. As a result of that there will be greater accountability in those areas. The changes will help to increase the speed and reduce the regulatory costs of dealing with firms and individuals that fail to meet the FCA standards.

“As part of our transformation we will continue to take a fresh approach to tackle firms and individuals who do not meet the required standards. As part of this, we aim to become a forward looking, proactive regulator - one that is tough, assertive, confident, decisive and agile.”

Wealth management trade association PIMFA welcomed the move, saying that it should make it a more agile and proactive regulator.

Simon Harrington, senior policy adviser at PIMFA, said: "We have been very clear – publicly and privately – that thriving retail markets depend on effective and proactive supervision of firms, which are either willingly or unknowingly introducing harm into the market.

"We believe that the proposals set out will make the regulator more efficient in its decision making and, provided that they are accompanied by improvements in identifying harm in the first place, lead to better outcomes for consumers."

The consultation will close on 17 September.