


FCA Applications for Authorisation
In an ever-changing regulatory landscape, it is crucial that you get the FCA Authorisation process right! You may already have a strong business idea and the right people in place, but in order to conduct your activities legally in the UK you must first convince the FCA that you meet their stringent "Threshold Conditions" for authorisation, and can demonstrate a plan to comply with all the individual rules that apply to you. Get it wrong, and it's game over for your business.
Our expertise and understanding allow us to quickly understand your business model, determine what category of firm you are, what the products are that your offer, and also the specific regulatory requirements thereof. We then work with you to build an application which represents the business which you wish to undertake, in a way which is easy to understand for the Regulator and also other compliance and legal professionals.
The Application Process
After reaching out to us we will arrange a call with you to discuss the scope of your business in order to work out the exact permissions you will need. We will give you a run-down of the process and timings involved in your type of application, as well as the compliance burden you will face after your business has been given the permissions.
Reviewing and providing additional documents you need:
Following our initial kick-off meeting we will review all the existing policy documentation and provide you with any missing documents in a form of templates. These may include:
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Regulatory Business Plan template
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Template financial forecasts
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Templates for listing controllers and approved persons
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Internal and personal controls procedures
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Client classification notices and policy
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Risk Based Compliance Monitoring Programme - this lists all the rules that apply to your type of firm along with the nature and frequency of monitoring needed
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Model for calculating financial resources and capital adequacy
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Anti-Money Laundering (AML) policies and procedures
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IT Security/Anti-Fraud Statements of Policy (for tech-based firms)
Assisting with tailoring and completing your documentation library:
We will work closely with you to tailor and complete all the documents you need to send to the FCA as part of the application. Most of these documents and policies will require your input, and we will be on hand to provide detailed guidance on working versions so you can bring them to a state that the FCA will be happy with.
Drafting the FCA Application:
When you have finalised your Business Plan and supporting information, we will draft detailed responses to the questions within the main application forms on your behalf. Where we need your input we will reach out to you with specific questions. The forms which capture information on your staff and owners will need to be filled out by the individuals and companies themselves; we will then go through them with a fine-toothed comb to spot any areas of concern or where we need further information.
Building and submitting the application pack to the FCA:
When we have finished working with you to draft and collate the application forms and supporting information, we will build the application pack for you in the FCA's Connect system and get it ready for submission. At this stage, you will need to pay the FCA an application fee. Naturally, we will let you know how much you can expect to pay at a very early stage of the application.
Assisting with the FCA Case Officer's requests for information:
After the FCA receives the application, there tends to be a wait time of a number of months before they complete their initial assessment, the wait time varies greatly depending on what type of firm, and the FCA's current workload. The FCA will then reach out to you via a "case officer" with requests for more information. When this occurs we will actively work with you to respond to the FCA, drafting initial responses on your behalf and providing detailed guidance on the best way to present supporting information. Generally speaking, there will be a number of "rounds" of questions from the FCA, and we will be by your side supporting you up to the point you become authorised.
FCA Application FAQ
What are the different types of FCA authorisation?
There are two types of FCA authorisation that a consumer credit firm can apply for: Limited Permission and Full Permission.
Limited Permission
This regime is for firms conducting lower-risk credit-related activities. It has a shorter application process and a lower application fee. Limited Permission firms are also subject to fewer threshold conditions.
Limited Permission consumer credit activities include:
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Consumer credit lending or brokerage linked to the sale of goods
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Consumer hire
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Local authorities
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Not-for-profit debt counselling, debt adjusting and credit information services
Full Permission
Firms that carry out high-risk credit-related activities require Full Permission. This involves demonstrating that your firm can meet all the FCA’s threshold requirements.
Full Permission consumer credit activities include:
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Consumer credit lending
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Credit brokerage, information services and reference agency
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Debt administration, adjusting and collection
How much does it cost to get FCA authorisation?
FCA application fees depend on the complexity of your firm.
The FCA categorises firms into three groups:
Your one-off application fee is payable before the submission of your application. It’s non-refundable, even if your application is unsuccessful.
Annual fees after authorisation also vary. You can estimate your annual fee using the FCA annual fee calculator.
How long does FCA authorisation take?
It typically takes 6-8 weeks from when you start preparing your application to being ready to submit.
After submission, you’ll undergo an assessment period of up to six months if your application is complete.
If the FCA considers your application incomplete, your assessment period will be extended for up to six more months.
Be aware that the FCA rarely considers applications to be complete when they’re first submitted. So authorisation can take a lot longer than you might expect.
By working with the regulatory experts at FinTech Compliance, you can submit the most complete application possible the first time around. This helps minimise the time needed for you to achieve authorisation, even if your initial application is deemed incomplete.
Can a growing firm change its permissions?
If an authorised firm wants to significantly change the scope of its permissions, it can request an extension from the FCA.
If the extension is granted, that firm may fall into a new fee block. In this case, a permission variation fee of 50% of the equivalent application fee for the new block is payable.
Example Firms
Consumer credit firm application fee (2024)
Other firms application fee (2024)
Straightforward
Moderately Complex
Complex
Advisory arrangers, dealers or brokers; general insurance mediation
Fund managers; firms dealing in principal; operators, trustees and depositaries of collective investment
Corporate financial firms
£100-£5000
£800-£10,000
£1000-£15,000
£1500
£5000
£25,000
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