The responsibilty of the CAA in respect of financial viability is limited to ensuring compliance with Paragraph 9 of Appendix 1a to JAR-FCL 1.055 (i.e. A FTO shall satisfy the Authority that sufficient funding is available to conduct training to the approved standards (see IEM No. 2 to JAR–FCL 1.055)). Provided that a snapshot of the FTO's finances at the time of approval (or re-approval) shows that sufficient funding is (or is likely to be) available, the approval will be issued (or renewed). Thereafter, any issues arising between the FTO and its 'customers' are a matter for Trading Standards and not the CAA.
Of course, this depends upon the CAA conducting a full financial evaluation (in accordance with IEM No.2 to JAR-FCL 1.055) of each FTO at each approval and/or re-approval. If this has not been done and the Authority has, for example, simply accepted a statement from the accountants that the company is a 'going concern' then there might be a case for judicial review.