Financial Conducts Authority (FCA)

About FCA

We regulate the conduct of 50,000 firms in the UK to ensure that our financial markets are honest,
competitive and fair. Find out more about our role.

Our role

Financial markets must be honest, fair and effective so consumers get a fair deal. We work to ensure that
these markets work well for individuals, for businesses and for the economy as a whole. 

We do this by:  

 regulating the conduct of around 50,000 businesses 

 prudentially supervising 48,000 firms 

 setting specific standards for around 18,000 firms 

We were set up on 1 April 2013, taking over conduct and relevant prudential regulation from the
Financial Services Authority (FSA).

Our Head Office is based in London, but we also work across the UK, from our offices in Leeds and
Edinburgh and via colleagues in Belfast and Cardiff.

How we regulate

Firms and individuals must be authorised or registered by us to carry out certain activities.  

Before we grant authorisation, firms must demonstrate that they meet a range of requirements. We
then supervise these firms to make sure they continue to meet our standards and rules after they’re
authorised. If firms and individuals fail to meet these standards, we have a range of enforcement
powers we can use.  

We work alongside the Prudential Regulation Authority (PRA), the prudential regulator of around 1,500
banks, building societies, credit unions, insurers and major investment firms. 

Why we do it

Financial services play a critical role in the lives of everyone in the UK, from junior ISAs to pensions,
direct debits to credit cards, loans to investments.  

How well financial markets work has a fundamental impact on us all. 

UK financial services employ over 1.1 million people and contribute about £75 billion in tax per year.
Based on our policy and enforcement work, we estimate that we add at least £11 of benefits to
consumers and small businesses for every pound we spend.  

If UK markets work well, competitively and fairly they benefit customers, staff and shareholders, and
maintain confidence in the UK as a global financial hub.

How we operate
Our strategic objective is to make sure relevant markets function well. We’ve outlined how we will
achieve this objective in our 3-year Strategy.  

Our operational objectives are to: 

 protect consumers from bad conduct

 protect the integrity of the UK financial system

 promote effective competition in the interests of consumers

We're an independent public body funded entirely by the fees we charge regulated firms. Our role is
defined by the Financial Services and Markets Act 2000 (FSMA) and we’re accountable to the Treasury,
which is responsible for the UK’s financial system, and to Parliament.

We work with consumer groups, trade associations and professional bodies, domestic regulators,
international partners and a wide range of other stakeholders.  

We have a large and growing remit, and use a proportionate approach to regulation. We do this by
prioritising the areas and firms that pose a higher risk to our objectives. 

How we measure our performance 

Every year, we outline the actions we’ll take to achieve our objectives in our Business Plan and we
describe the progress we’ve made in our Annual Report. 

We also publish a list of our multi-year outcomes and metrics that we use to measure our progress and
against which we hold ourselves accountable.  

We measure our performance using operating service metrics (formerly known as service standards).

These are the metrics that we aim to meet when carrying out our work. We publish these as part of our
commitment to be a transparent organisation. 

The Authorisations Division also publishes key performance indicators (KPIs).

How to apply for authorisation or registration

If your firm needs to be authorised by us, or registered with us, learn about the process, our
expectations and how to apply.

You'll need to read this page alongside the specific information for your type of firm or business model:

 go to the authorisation homepage

 select the relevant page for your type of firm

 use this information when preparing your application

Being ready, willing and organised

We expect you to take regulation seriously. This means that when you submit your application, we
expect you to be ready, willing and organised to comply with:

 our current rules and guidance on an ongoing basis, and

 any rules we introduce in the future

In your application, you'll need to show that your firm can do this and that you've planned ahead. 

Ready, Willing, Organised

Demonstrate to us that you've prepared before submitting your application. This includes
reading information on our website or contacting us if you have an enquiry.

We expect all documents to be final versions that have been reviewed thoroughly and appropriately
signed off before you submit them. We won't review draft documents.

You should also consider seeking legal/compliance advice, and be ready to clearly articulate your
regulatory obligations.

The application process

You'll need to submit your application on our Connect system. The first thing to do is register.

If your application is complete, we'll usually assess it within:

 6 months if you're a FSMA firm

 3 months if you're a payments or e-money firm

You're unlikely to get authorised/registered straight away. We usually have questions or seek
clarification, so please allow time for this. If your application isn't complete, it could take up to 12
months.

You'll also have to pay an application fee.

What to know before submitting your application

You have to demonstrate that you can and will:

 comply with our principles of business

 comply with the relevant rules in our Handbook

 meet our minimum standards at all times

o for FSMA firms, we refer to these standards as our threshold conditions

o for payments and e-money firms, we set out our expectations in our approach
document (which links to the requirements in the PSRs and EMRs) 

The relevant page for your type of firm will also have specific information – for example, which forms you
need to complete and what to include in your business plan.
Top 3 tips to avoid delays

Doing these things will help your application go as quickly and smoothly as possible.

Remember to include everything

Make sure your application has no incomplete or missing forms, sign them where specified and provide
passwords for any protected files. Check you've filled important positions (eg compliance officer), and
thoroughly prepare your firm's financial information. It's also important to demonstrate that the
technology or systems you'll be using are ready to carry out the applied-for regulated activities.

Be as clear as possible

Your business model shouldn't be generic. It needs to explain your firm's specific activities and how they
align with the permissions you're applying for. In general, giving more detail is better than less. Eg if
some of your firm’s controlled function holders are overseas, explain how they'll carry out their functions
at a distance.

Meet our standards at all times

It's essential that you identify conflicts of interest and explain how you intend to manage or mitigate
them. You must be open and co-operative with us and provide responses within the requested dates.
This includes setting out what compliance arrangements you've put in place to meet your firm’s ongoing
regulatory obligations.

After submitting your application

We'll assign a case officer to assess your application. They will:

 assess whether your business meets, and will continue to meet, our minimum standards

 check your application against information held by other regulatory agencies in the UK or
overseas

 make a decision on your application

You should expect to hear from your case officer throughout the application process. They will usually
have follow-up questions and may ask for further documentation or want to meet with you.

You can track the progress of your application in Connect, and will have the opportunity to correct
mistakes or gaps. However, if you make substantive changes which indicate that you're not ready, willing
and organised, we may ask you to withdraw your application and reapply.

Our commitments to you

We know that when you apply to us, we ask for lots of detailed information about your business. In
return, we offer you a set of commitments.
These commitments cover every type of application. They apply until we make a decision about your
application, and we aim to meet them consistently.

Our commitments

Successful applications

If we approve your application, these are the next steps.

We add you to the Financial Services Register

Upon authorisation or registration, you're automatically added to our Financial Services Register. We'll

give you a Firm Reference Number (FRN) that uniquely identifies your firm, and if applicable Product
Reference Numbers (PRNs) that uniquely identify funds.

We write to you

We’ll write to you confirming your authorisation/registration. We'll confirm which regulated activities
you have permission to carry out, when your permission starts and which requirements or limitations
you’ve requested and/or we've decided to put in place.

You have some things to do next

Refer to our page with useful information for newly authorised firms. This includes links to the main
systems you'll need to use and topics you need to be familiar with.

There are other things you may need to do once you're authorised or registered, like change your firm
details or vary your permissions. There's a full list on the authorisation homepage.

We may be in touch to offer extra support

Our Early and High Growth Oversight team provides closer supervision and support to certain newly
authorised firms and firms focused on growth or scaling innovative technology. You don’t need to apply
to be part of Early and High Growth Oversight – we'll contact you directly if you’re included.

You can also contact us whenever you need our assistance.

Unsuccessful applications

If we think that your application doesn't meet the standard for authorisation or registration, we'll refuse
it and your application fee won't be refunded.

We'll send you a warning notice and, if you don't agree with our decision, you can make representations
to the FCA decision maker.

Unless we change our decision, we'll then usually publish our reasons for refusal in the form of
a decision notice or final notice.

There's more about our refusal process in our Handbook.