FCA application is designed for a faster turnaround. However, new or smaller firms may find the process quite overwhelming as they may not know what to do. Going through the FCA registration itself requires a dedication of enough time and handling significant documentation. Add on top of these challenges the ever-changing legal framework that introduces a new set of rules and cultural expectations.
We have outlined five steps that firms can follow to get FCA authorisation:
Table of Contents
#1: Determine you need permission
You can only seek FCA registration if your operations involve regulated activities. Thus, before applying, you need to first find out that you are engaged in activities highlighted by the regulatory body.
The FCA has created the perimeter guidance (PERG), which specifies the authorisation needed for particular activities. However, firms will find it beneficial to speak to a compliance consultant for advice on the matter.
Firms often need to get different levels of permission. There are those that only require Limited Permission and those that have to go for Full Permission. There is also an FCA decision-making toolkit that can help clear any confusion choosing the permission category. Ensure you get it right here if you want the application expedited.
#2: Create an operational strategy
Once you know the permissions needed, you can begin concentrating on the core factors. Determine how being on the FCA register impacts your operational costs and capital as well as how the rules influence the firm’s way of doing things. More importantly, decide on the individual staff that will require approval for the Approved Persons Regime.
Businesses find it easy to start with a gap analysis based on FCA’s minimum conditions to get authorisation. These are called Threshold Conditions, and firms will need to keep meeting them to maintain the FCA authorisation status.
The Threshold Conditions require your head office to be located in the U.K., to have effective supervision, share a befitting FCA business plan, and have appropriate resources.
#3: Put your documentation in order
Going through the FCA registration process requires a significant amount of documentation. Thus, firms need to make sure that they have all the needed documents ready for submission as the regulator asks for them.
The FCA will need different types of documentation depending on the permission level. The Handbook functions as a guide to the kind of documents you need to have ready. For instance, consumer credit companies will need to provide pre-contract information, supply draft agreements, and promotional literature.
The FCA business plan stands out as the single most important document that initiates the majority of the legal framework. The document clearly explains to the FCA the nature of your business and functions as a gauge of business risks.
#4: Setup the application
With all the pre-application processes complete, you are ready to work through the application. Do so by registering on the FCA Connect System and creating a new application. Firms submit applications and notifications through this system. Once approved, the Gabriel system is available for sending regulatory data.
#5: Declaration and submission
The final step of the application process involves declaring that the information provided is accurate and complete. You will tick a checkbox confirming the retention of the application copy for inspection purposes.
Speak to compliance consultants such as Mema Consultants when having challenges with your FCA registration.
Also Read: Knee Pain Causes And Treatments.
