No doubt, setting up a business in the fintech or financial services sector comes with tons of benefits. However, before you’ll be able to enjoy all these goodies, you need to either become registered or authorized with the Financial Conduct Authority (FCA). Yes, FCA authorization is essential, as it’ll assist you in protecting your end customers. That’s not all; being registered or authorized by the FCA can also help you protect your business from the inevitable risks that come with offering various financial services.
What is FCA authorization?
Before going ahead to talk about the importance of “authorization by FCA” let’s quickly understand what this term means.
Authorization is one of the few terminologies used by the Financial Conduct Authority. It has a lot to do with measuring and minimizing risks attached to running a financial business. Apart from protecting your business, authorization also includes being transparent about how you handle your customers’ data and assets.
As earlier mentioned, before getting authorized by the FCA, you need to set up a business in the financial services, insurance, or fintech industry. While setting up the business, you need to ask yourself a couple of questions to aid your planning process. For instance, you need to clearly define your goals (exactly what the business intends to offer its customers). In addition, you need to define who your target audience is, including their locations.
Once you find answers to the questions above and a few others, the next thing is to apply for FCA authorization. As soon as you get authorized, you can start trading and running your financial business.
Why is FCA authorization important to your business?
One of the advantages of getting FCA authorized is that it’ll make you become a regulated trader. If this happens, you’ll be free from all the penalties attached to trading as an unregulated business owner.
In case you don’t know, your failure to apply for a relevant FCA authorization means you’re an unregulated trader. Unfortunately, if the FCA finds out that you trade without its authorization, you’ll certainly face many penalties. The Financial Conduct Authority will fine you, asking you to pay a certain amount of money. Besides, the FCA can also suspend your firm from undertaking any regulated financial activities.
Furthermore, the FCA can always charge you with a criminal offense if it caught you trading without authorization. This is especially true if you’re the director of the business. For More Info Read Here https://thebodynarratives.com/
Become a regulated trader today with Mema Consultants
Now, you already know what FCA authorization is and why it’s important for your business. So, what next? It’s simple, you need to find a reliable company that can help you get authorized. Mema Consultants is one of the few firms you can trust in this case. By contacting Mema, you’ll get a dedicated Regulatory Director, who will make your FCA authorization journey easy and smooth.