How to start authorized and regulated by the FCA in the UK

May 24, 2023
How to start authorized and regulated by the FCA in the UK

Before starting FCA in the UK, companies need to check whether they can operate in this market. First of all, it is important to double-check that their activities do not violate the laws of this state. It is also important to analyze whether the company fulfills the prerequisites of the local regulator.

The implementation of Brexit allowed the UK to from EU legislation. This has led to the situation that companies registered in other EU countries need to apply for permits from the local UK regulator. Otherwise, it is impossible to complete financial conditioning in that country.

It does not matter what kind of activity the company was engaged in before. For any kind of financial service, it is necessary to apply in advance and only after its approval the company is allowed to operate in the market.

Businesses that need to obtain a permit

Permissive documents must be issued to enterprises engaged in the following types of activity:

  • consumer lending;
  • investment;
  • banking, credit, or insurance services;
  • test administrations;
  • credit rewriting, trade repositories;
  • electronic payments and online transfers;
  • crowdfunding;
  • underwriting.

It is important to remember that without a license or other authorization from the UK regulator, no company can engage in the above-mentioned activities in the UK.

How to apply for a permit

To apply for the appropriate permit, the regulator needs to know about your intentions. For this purpose, the company submits a detailed plan for the functioning of the company with the output of certain indicators for a certain period. Also, fill out a special form with the application and other docs that may be requested by the regulator itself. The business plan must include the financial projections of the company. If the company was already operating in the market, it is necessary to provide:

  • its balance sheet indicating the profitability or unprofitability of its activities;
  • data on capital investments and liquidity;
  • a guide to regulatory compliance;
  • a risk monitorings program;
  • the company’s organizational structure;
  • senior management information;
  • the responsibilities of the company’s top executives and key employees.

For companies operating as payment`s service, registration with the regulator is required. however, they do not need to be fully authorized. After all, their activities are less risky than banking or insurance services. The same procedure is for e-money corporations and small-alternative investment funds.

It can take from a month and a half to two months to prepare the above documents and procedures for the application. It all depends on how fast the corporation can provide the critical data. Once the app is advanced, the regulator may not review it for up to 3 business days. After that, they acknowledge receipt of the application and the analysis begins.

The analysis procedure can take from 3 weeks. During this time, the application is assigned to one of the employees of the regulator. He has to follow application procedures, analyze your application and provide a conclusion. If critical, he is allowed to reach the corporation to clarify certain details.

The maximum deadline for consideration of the application is a year. Nevertheless, most decisions are made in half the time. If the application is initially correctly prepared and the firm meets the requirements of the regulator, it can be approved in 3 months. The larger the firm and more complex its organizational structure, the more time it takes to process all the data about the corporation. Therefore, applications from simple firms are considered faster.

The British regulator divides all applications into simple, moderately-complex, or complex-versions. Depending on the category of the application, the cost of obtaining approval will differ. At the same time, the cost must be paid before the start of the analysis of the application by an employee of the regulator. The cost of obtaining a permit can vary greatly. The minimum to be paid is Β£250 and the maximum is Β£200,000. But for most companies, the range of costs varies between one thousand and ten thousand pounds. This fee is paid on a one-time basis, but companies will also need to make annual payments if the application is approved. The one-time payment is not refundable to the firm if it was denied a license.

Some companies mistakenly believe that the regulator’s fee is the amount of capital that must be in the account at the time of application. But this is not true, because this figure will depend on the kind of activity of the company and the volume of transactions it plans to conduct.

How we can help you

Our staff is available to help clients through all stages of your regulatory application. We are ready to take over all the functions of the processes during the application procedure. In particular, we are ready to prepare documentation, provide advice, support clients, and help them to correct and submit additional data.

Corporations need to contact our company before preparing an application for the regulator. Most companies that do it themselves get rejected and lose money on the spot. And when you consider the lost profits and wasted time, contacting us can help recoup your investment.

Our staff has the necessary skills and knowledge regarding authorization by the British regulator and the registration of companies in this country. In addition, we are well-versed in the creation of corporate-structures and tax-legislation, as these documents may also be requested by the regulator. Representatives of our firm are ready to provide a full range of services to meet the needs of the company and the conditions of the regulator.

Besides we are ready to provide additional legal advice for companies on compliance with the requirements of the regulator, and prudential ordinance and independently analyze your application. This will help in the initial stages immediately notice the deficiencies, which can be corrected before the data is submitted to the regulator. To conduct a preliminary consultation on the issues of authorization with the regulator, or obtain legal or tax advice, contact our experts in any way convenient for you.

Related insights

What are the steps to obtain FSP registration in New Zealand?

An organization may enroll as a financial services provider under the Financial Services Providers (Registration and Dissolution Act 2008 (β€˜Act’). This indicates that the Ministry of Economic Development registers the organization to offer commercial services. When your enterprise secures enrolment as a FSP, you may be permitted to handle such monetary operations: broking service, financial...

Greatest Payment Innovations to Change the Industry in 2024

The commercial industry has experienced a vital growth, characterized by quick developments that have transformed the methods of money lending. The commercial sector is evolving. We are going to investigate the greatest payment innovations to change the industry in 2024. Twenty-first century payment formats The payment modernization today is undergoing an integral alteration driven by...

A Crypto License in Comoros: A Universal and Reliable Solution

For entities venturing into the realm of contemporary assets such as cryptocurrencies, a pivotal contemplation surfaces: the imperative acquisition of requisite authorizations for this undertaking. The jurisdiction where your operations transpire might develop a vested concern in scrutinizing your fiscal conduct concerning these unconventional assets. By securing a fitting accreditation, even if it assumes the...

5 offshore jurisdictions you probably haven’t heard about

This article presents a concise overview of 5 offshore jurisdictions which are relatively unknown to many. Samoa Samoa is an island sovereign group situated in the South Pacific Ocean, halfway between Hawaii and New Zealand. It is in the late 1980s that Samoa became an offshore authority with the passing of the 1987 International Companies...

Brokerage License in the Comoros: advantages and disadvantages

The Comoros, an archipelago nation nestled in the Indian Ocean between Madagascar and the coast of Mozambique, is not only a picturesque tourist terminus but also a budding hub for monetary services. With its strategic location and favorable supervisory circumstances, the Isles has become an attractive terminus for individuals and enterprises seeking to acquire brokerage...

Comoros Anjouan Forex License’s costs, requirements, countries it can’t be used in, and procedures

Contemplating the intricacies of contemporary business sans the protective veil of a fairness-affirming license presents a formidable problem. In the current landscape, regulatory guardianship is paramount among discerning clientele, particularly in the intricate realm of financial entities like Forex. While some minor participants might dare entrust their funds to an unlicensed Forex enclave, discerning investors...

The International Brokerage License in Comoros: why is it a good alternative for forex business?

Moving an enterprise to a distant financial heaven represents a widespread ambition for numerous global people looking to lower their levy burdens. In many cases, particularly those from the USA, Europe, or Canada, relocating their operations holds great appeal. The allure intensifies when considering the illegality of double taxation in most nations. Conducting business in...