The Financial Conduct Authority (“FCA”) is the body that is responsible for approving new applicants and then supervising them on an ongoing basis.
The activities that trigger a requirement to seek authorisation from the FCA are set out in the UK’s Regulated Activities Order. We can help you evaluate whether permission is required and, if you wish for a legal opinion, we can introduce you to suitably qualified law firms.
Types of applications we support
We want to focus on what we do best and therefore we support the following types of licence applications:
- Fund management (all asset classes)
- Investment advisers
- Fintech
- Corporate finance and M&A
- Brokerage firms
- Retail discretionary investment management
- Retail investment advisory
If your sector is not listed, we may still be able to support you. Please feel free to get in touch with us.
Top 10 items for successful FCA application
We think that the following are very important for a successful application. Please read these alongside the further reading we have provided in the section below.
- Overall proposition: It is important to have a strong business proposition that is designed to achieve good outcomes for your clients or investors. You should consider your proposition from their perspective – if you were in their shoes, why should they participate and what are the benefits to them?
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Legal advice: Taking legal advice on the proposed business structure is very important and will save time later if, after FCA scrutiny, it turns out that you are not seeking permission for the correct Regulated Activities. This may have implications for governance and financial position, such as needing additional people or additional financial resources.
- Sufficient experience: Make sure you can clearly articulate to the FCA why you are qualified to undertake the activities for which you are seeking permission.
- Financial projections: The FCA expects detailed projections that link to the assumptions you are making about revenue and expenditure, and that tie into your business plan. Engaging a suitably qualified accountant may be useful.
- Compliance and financial crime experience: For small businesses, hiring a full‑time or part‑time compliance resource may not be viable. However, having such an individual will greatly help in the application process. Alternatively, someone in the business can take relevant compliance training and be supported by an outsourced adviser.
- Management information/Internal decision making: Think about what could go wrong in the business and how you will measure success. This will help you craft template management information packs and decision‑making authorities to manage the business day to day.
- Policies: You will need a full FCA‑compliant policy suite.
- Controls: In addition to compliant policies, you must demonstrate how these will translate into day‑to‑day actions. A controls matrix can assist with this.
- Attention to detail: Hundreds of pages may need to be submitted to the FCA. It is important to review all information carefully to ensure accuracy and internal consistency.
- Ready to roll: Lastly, and perhaps most importantly, you must demonstrate to the FCA that you are ready, as of the day you submit the application, to conduct regulated business.
How can we help?
We can assist with all aspects of making an application to the FCA. This includes:
- Advice on business model, financial and operational matters
- Project management
- Drafting all relevant forms
- Holding the pen on your regulatory business plan
- Calculating your regulatory capital requirements
- Assisting you respond to FCA queries
What happens once you are approved by the FCA?
Once you are approved by the FCA you can commence business. Please see our Outsourced Compliance service for how we can help you at this stage of your Journey.
To learn how we can help you on your Appointed Representative journey, please get in touch.