Professional & Financial Services UK-wide

Get FCA authorisation for financial services

How to apply for Financial Conduct Authority authorisation to carry on regulated financial activities. Covers the application process, fees, capital requirements, and ongoing compliance obligations including Consumer Duty.

Guide summary

Apply for FCA authorisation before you start any regulated financial activity in the UK. The process takes 6 to 12 months and costs at least £1,500. You must show you have enough money, the right people, and proper systems. Operating without authorisation can lead to 2 years in prison or an unlimited fine.

  • Check if your business needs FCA authorisation using Perimeter Guidance
  • Apply online through FCA Connect (connect.fca.org.uk)
  • Submit a business plan, 3-year financial projections, and capital assessment
  • Pay the application fee: £1,500 (standard) or £5,000 (complex)
  • Pay £250 for each senior manager you want approved
  • Provide 6-year regulatory references for all senior managers
  • Set up systems for compliance, IT security, and complaints handling
  • Expect the process to take 6 to 12 months with several review rounds
  • Operating without authorisation is a crime — up to 2 years in prison
  • You must follow Consumer Duty rules after you get authorisation
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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:

Technology & Digital Requirement

Technology & Digital businesses only

Fintech firms using embedded finance, Banking-as-a-Service (BaaS), or partnering with regulated entities must ensure regulatory responsibilities are clearly defined. Outsourcing regulated activities doesn't remove your regulatory obligations - you remain accountable to the FCA.

If you're building payment infrastructure or handling customer funds, clarify whether you need full FCA authorisation or can operate under an agent/distributor model with a principal firm that holds the permissions.

Who this applies to: Fintech platforms using white-label financial services or embedded finance APIs
FCA Innovation Hub guidance (opens in a new tab)

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. Complex applications can take longer. The FCA has no statutory deadline.

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.