A Small Business Guide To FCA Authorisation

1. A S M A L L B U S I N E S S G U I D E T O FCA AUTHORISATION I M P O R T A N C E O F F C A A U T H O R I S A T I O N For any firm participating in financial services, FCA authorisation is an essential part of the process that verifies if they are fit to conduct business. All unauthorised businesses are subject to large fines and imprisonment under the current rules. Consumer credit, electronic money, insurance products, and payment services: all require FCA authorisation to operate legally. C O S T O F F C A A U T H O R I S A T I O N The key factors that affect the cost of FCA authorisation for a business are its projected annual revenue and the complexity of its operations. For instance, a firm with straightforward operations with a consumer credit annual income up to £50,000 will be charged £600 for full permission application. Source: FCA Handbook P R O C E S S O F F C A A U T H O R I S A T I O N The FCA authorisation process is often described in four steps. First, one must decide on the necessary permissions and controlled functions. Second, the FCA-specific application forms supported by essential documents. Third, completing business-specific controller forms, Finally, submitting the application, which can take up to 6 months for a reponse by the FCA. A L T E R N A T I V E T O F C A A U T H O R I S A T I O N Small businesses can skip the wait time for FCA authorisation by choosing to become appointed representative or independent contractors. FCA Regulatory Umbrella services allow appointed representatives to operate under an authorised firm, thus trading in compliance with the FCA and minimizing operational risks for your small business. L E A R N M O R E A T R I S K S A V E . C O M