If your business involves regulated financial activities - such as advising on investments, providing consumer credit, or accepting deposits - you need authorisation from the Financial Conduct Authority (FCA) before you can operate.
The authorisation process is rigorous and typically takes 6-12 months. You'll need to demonstrate that you meet the FCA's threshold conditions for authorisation, including having adequate financial resources and suitable people in charge.
Do you need FCA authorisation?
Not all financial activities require authorisation. You need to check whether your specific activities fall within the 'regulatory perimeter'. The FCA's Perimeter Guidance (PERG) helps determine this.
Some businesses can operate without full authorisation:
- Appointed representatives: Act on behalf of an authorised firm
- Exempt persons: Certain activities by local authorities, professional firms
- Limited permission: Smaller consumer credit activities
If in doubt, seek legal advice - operating without required authorisation is a criminal offence.
Regulated activities
The following activities require FCA authorisation:
Application and annual fees
Total cost of authorisation: Beyond the application fee, budget for:
- Legal advice on application (often £10,000-£50,000+)
- Compliance consultancy
- IT systems meeting FCA requirements
- Professional indemnity insurance
- Capital requirements
The annual periodic fee varies by firm size and activities - check the FCA Fees Calculator.
Capital requirements
You must have and maintain adequate financial resources:
Consumer Duty
Since July 2023, FCA-authorised firms must comply with the Consumer Duty - the FCA's flagship conduct standard:
Senior Managers and Certification Regime
Authorised firms must comply with individual accountability requirements:
Anti-money laundering requirements
All regulated financial services firms must have robust AML controls:
How to apply for authorisation
Expected timelines
Understanding the authorisation timeline helps you plan your business launch:
FCA online services
The FCA provides online systems for applications and ongoing compliance:
Enforcement and penalties
The FCA has extensive enforcement powers:
Common questions
How long does authorisation take? Typically 6-12 months from complete application. FSMA 2000 s.55V sets statutory determination deadlines: 6 months from a completed application, with an absolute backstop of 12 months. Complex applications can still take most of that window.
Can I start trading while applying? No. You must not carry on regulated activities until you receive authorisation. Operating without authorisation is a criminal offence.
What if I need to act quickly? Consider becoming an appointed representative of an existing authorised firm while your own application is processed.
Do I need FCA authorisation for payment services? Yes, payment services require either FCA registration (small PI) or authorisation (authorised PI). E-money issuance requires e-money authorisation.
Legal basis
Primary legislation and key regulations