Get authorised to operate as a bank

Accepting deposits is a regulated activity. To do it you need permission under Part 4A of the Financial Services and Markets Act 2000 (FSMA). The Prudential Regulation Authority (PRA) authorises banks, but only with the consent of the Financial Conduct Authority (FCA), so you are assessed by both. Accepting deposits without permission breaches the general prohibition in section 19 and is an offence under section 23: on indictment up to 2 years in prison or a fine, or both, and on summary conviction up to 6 months or a fine, or both. You also cannot call yourself a bank, or use "bank" in a domain name without the FCA's consent, until you are authorised.

Choose full authorisation or authorisation with restrictions

Full authorisation lets you trade without limits from the day you are authorised, so you must be operationally ready by then. It suits an existing firm or an established international group.

Mobilisation is optional and is for finishing the build, not starting it, so most design work has to be done before you apply. Tell the regulators in pre-application which route you want.

What the regulators assess

Both regulators test whether you meet the threshold conditions, the minimum standards for authorisation, and whether you will keep meeting them. They assess each firm case by case.

• The PRA looks at your legal status, where your head office is, whether you will conduct business prudently with enough financial and non-financial resources, whether you are fit and proper, and whether you can be effectively supervised.
• The FCA looks at whether you can be effectively supervised, whether your non-financial resources and business model suit the activities, and whether you are fit and proper.
• Your regulatory business plan must set out your business model and financial forecasts, market analysis, governance, risk register and stress testing, funding and controllers, financial crime controls, operational resilience, and how you will meet the Consumer Duty.
• Your internal capital and liquidity adequacy assessments are reviewed to set the capital and liquidity you must hold.
• You need a plan for access to payment systems, because new banks are unlikely to operate without it.

Appoint approved senior managers

Each person who will hold a senior management function needs regulatory approval before they start the role, and you must allocate responsibilities across your senior managers. For mobilisation you need at least a chief executive, a board chair and one other executive, usually the finance director. For full authorisation you need a fully functioning executive team and board, and two independent non-executive directors is established good practice. Other staff who could cause significant harm fall under the certification regime, where you assess their fitness and propriety.

Timetable and cost

Pre-application engagement with the New Bank Start-up Unit is free and optional but recommended. It usually runs through your business proposition, a draft regulatory business plan and technical sessions on your capital and liquidity documents. The unit says whether your application is complete, usually within 3 weeks.

From 2 July 2026 the combined PRA and FCA application fee is £56,300. It is not refundable, and a withdrawn application that you resubmit would likely pay again.

Protect depositors

Eligible deposits at a PRA-authorised bank are covered by the Financial Services Compensation Scheme (FSCS), which the banking sector funds through levies.

After authorisation

You must always meet your capital and liquidity requirements and the threshold conditions, submit regulatory returns on time, and keep your risk management and controls in step with your growth.

The regulators expect you to show how the FCA's Consumer Duty is built into your business model.

What to have in place