Financial Conduct Authority (FCA) authorisation is a crucial aspect of operating within the financial services sector in the UK. It is the process by which firms demonstrate that they meet the regulatory standards set by the FCA and are therefore allowed to carry out regulated activities.
FCA authorisation can be challenging to achieve, as firms must meet strict requirements in order to receive and maintain their authorisation. These requirements cover a wide range of areas, including governance, risk management, financial resources, and customer protection.
How do I know my firm has gotten the FCA authorisation
Once a firm has been granted FCA authorisation, it will appear on the FCA register, which is publicly accessible. However, this does not mean that the authorisation will never expire. In fact, FCA authorisation is an ongoing process, and firms must continue to meet the regulatory standards to maintain their authorisation.
In some instances, the FCA may revoke your firm’s authorisation if it fails to meet the regulatory standards. This could happen if your firm experiences financial difficulties and then fails to comply with rules or engages in unethical practices.
Therefore, firms need to stay up-to-date with the latest regulatory requirements. It is also vital to have robust systems in place to manage risk and comply with the standards set by the Financial Conduct Authority. Doing this can help ensure that your firm’s FCA authorisation remains in place and that it can continue operating within the financial services sector.
FCA authorisation is a critical aspect of operating within the financial services sector in the UK, but it is not always easy to achieve except when you get help from experts. Even after getting the help, firms must meet strict requirements to receive and maintain their authorisation and continue to do so with the standards to retain their authorisation.
How to get the FCA authorisation
As we discussed earlier, the FCA sets regulatory standards that firms must meet to receive and maintain their authorisation. Likewise, appearing on the FCA register is a sign that a firm is authorised to carry out regulated activities.
So, one of the most frequently asked online questions is how a firm can achieve FCA authorisation and get on the FCA register. Here’s a step-by-step guide and boxes to tick before you consider attempting the registration:
- Assess whether your firm is eligible for FCA authorisation: The FCA has specific requirements for firms that wish to be authorised, and not all firms are eligible. For example, some firms may be too small or may not carry out regulated activities. Thus you need to assess if your company meets this eligibility status.
- Understand the regulatory standards: The FCA sets out its regulatory standards in the Handbook, a comprehensive guide to the rules and guidance that firms must follow. It is important for firms to understand these standards and assess whether they can meet them.
- Prepare a detailed application: Firms must complete an application form to apply for FCA authorisation. The application must be detailed and demonstrate how the firm meets the regulatory standards set by the FCA. You can get assistance with the application form from an FCA-appointed representative.
- Submit the application: The application must be submitted to the FCA, along with any supporting documentation. The FCA will then review the application and make a decision.
- Respond to any further information requests: The FCA may ask for additional information or clarification during the application process. Firms need to respond promptly and accurately to these requests. It often becomes tricky, so you need experts like Mema Consultants to help you work out the process.
- Complete any necessary approvals: If the FCA requires further approvals or registrations, firms must complete these before receiving their authorisation.
- Appear on the FCA register: If the FCA grants authorisation, the firm will appear on the FCA register, which is publicly accessible.
Firms must assess their eligibility, understand the regulatory standards, prepare a detailed application, and go through other steps to appear on the FCA register and achieve FCA authorisation.
Conclusion
It is public knowledge that going through the authorisation process can be challenging. So firms often request an extra hand from experts with proven track and experience in getting the FCA authorisation. There are countless firms, but the one senior manager regime we have researched that you can bank on is Mema Consultants.
