How FCA Compliance Consultants Support Authorisation Applications
The process of applying for FCA authorisation is extremely detailed and can cause massive delays if not completed properly. Understanding each stage of the process is crucial to ensure that you are ready to complete each section of the application to the best of your ability.
Scoping the Right Permissions
When first applying for authorisation it is important to first identify and correctly scope all of the work that your firm will carry out and then match these to the relevant permission categories. This is a time consuming process but one that needs to be done correctly from the outset to avoid potential problems later in the application process. Connect is only open for the submission of the application and so it is important to spend time getting this right.
Preparing Your Regulatory Business Plan
The FCA also expects you to provide a detailed regulatory business plan in your application, outlining your proposed target market and how you will interact with your customers as well as how you intend to make money and set out your financial projections for a minimum period of 3 years. This is arguably one of the most detailed documents you will produce in the course of your application and as such is expected to be extremely detailed and is frequently one of the causes of applications stalling as applicants’ business plans are found to be too vague or incomplete in one respect or another.
Completing the Connect Submission
The FCA’s authorisation process works and sets out the expected timelines for each application type. The Connect system forms are detailed and include forms for individual applications and financial information, as well as details of the firm’s operational arrangements. A systematic approach to completion of the forms before logging into Connect will save a lot of time in the long run.
Handling FCA Requisitions
A requisition is a follow-up question from the FCA, to seek further clarification or information on a specific point of your application. The way in which you respond to a requisition is critical. You need to ensure that you answer the question that has been asked of you, clearly and concisely without providing any unnecessary information. It is not uncommon for there to be a number of requisitions raised during the course of an application and each will need to be responded to promptly to avoid any delay in your application’s progress. The FCA Compliance Consultant will typically complete all requisitions on your behalf, but it is essential that they are able to answer each question succinctly and to the point.
A well-prepared application will generally progress faster than an application which has not been adequately prepared and may reduce the opportunity for the FCA to object at each stage of the application process.