FCA Authorisation Solutions for the UK Derivatives Issuers | Pre-licensing Support | FCA Authorisation Application Management | Post-licensing Risk and Compliance Solutions

We offer a comprehensive set of solutions to help you obtain and maintain a UK Authorisation for derivatives issuers issued by the UK Financial Conduct Authority (FCA), tailored to:

• Your business goals and objectives
• Your client demographics
• Your countries of operation
• The size of your business
• The available human and technology resources
• Your risk appetite
• Your governance structure
• The products that you offer
• FCA regulated derivatives issuers' obligations covering risk and compliance management under financial laws and regulations, the applicable financial licensing requirements, AML/CFT laws, privacy laws, consumer protection laws, and more

We have designed our regulatory licensing solutions to help you navigate the complexities of the AFSL framework for derivatives issuers in a commercially oriented and goal-focused manner, providing effective support for all stages of the UK derivatives issuers’ FCA authorisation process, including but not limited to the following aspects:

• Derivatives Issuer’s FCA Authorisation Guidance: Advising on a wide range of aspects associated with the UK derivatives issuers’ FCA authorisation as it relates to your specific situation
• Pre-licensing assessment: Covering compliance gap analysis as well as risk and compliance assessment
• Pre-licensing support:

• Drafting the necessary policies and procedures to help you comply with the derivatives issuer’s FCA authorisation requirements and the derivatives markets' regulations
• Developing internal controls to help you meet your obligations under the UK derivatives issuers' authorisation regime

• Derivatives Issuer’s FCA Authorisation Application Support: Covering the entire licensing process
• Post-licensing Support: Covering

• Ongoing compliance advice
• Comprehensive second-line risk and compliance support, including leading the implementation of your risk management framework (RMF), compliance management framework (CMF), compliance monitoring program (CMP), compliance calendar and checklist, ongoing risk assessments, internal and external reporting, outsourced providers' management, and more
• AML/CFT advice
• AML/CFT compliance management
• Compliance assurance solutions, including compliance assurance program (CAP) development, implementation, and internal control testing

 

Service Coverage

This page is about the UK Derivatives Issuers' FCA Authorisation. In the UK, entities issuing derivatives, must obtain an Authorisation (UK financial licence) from the FCA. An FCA authorisation allows them to provide financial services related to derivatives to both retail and wholesale clients. We offer comprehensive support for a wide range of derivatives issuers' FCA applications tailored to meet the specific needs of the following businesses:

• Exchange-Traded Derivatives Issuers
• OTC Derivatives Issuers
• Non-Retail Derivatives Offerings
• Swaps Execution Facilities and Clearinghouses
• Forex Platforms
• Financial Service Providers Related to Licensed Derivatives Issuers: This includes investment advisers, brokers, fund managers, and more.

You can find more information about our derivative issuer's FCA authorisation solutions below:

 

Derivatives Issuers’ FCA Authorisation Preparation

Pre-Authorisation Compliance Assurance

Our derivatives issuer's FCA authorisation solutions cover the following focus areas:

• Compliance Goals Analysis: We review your business-specific goals and resources against the suitability criteria for a derivatives issuer's FCA authorisation
• Initial Consultation: We provide guidance on potential risk and compliance issues that may arise during the UK derivatives issuers’ FCA authorisation process
• Choosing the Right Jurisdiction: We assist in evaluating regulatory, risk, and compliance environments to determine the most suitable jurisdictions for your derivatives issuer’s FCA authorisation, tailored to suit your:

• business objectives,
• operational capacity,
• client base,
• markets of operations,
• and other relevant factors

• Gap Analysis: We identify gaps between your existing operations and regulatory requirements and help you align them in a commercially oriented manner
• Derivatives Issuers’ FCA Application Plan: We help you establish a roadmap to effectively meet the derivatives issuer's FCA authorisation requirements

 

Derivatives Issuers’ FCA Authorisation Guidance

Selecting the right compliance model is crucial not only for navigating the licensing process but also for maintaining ongoing compliance and avoiding potential breaches. Our UK derivatives issuers’ FCA authorisation solution covers:

• Compliance Model Selection: To help you best comply with the UK derivatives issuers' licensing regime and related risk and compliance obligations.
• Corporate Governance Model Selection: We offer practical guidance on establishing effective corporate governance practices that support your risk and compliance oversight.
• Operations Model Advisory: We advise you on optimising your operational and governance models to help you efficiently comply with the licensing requirements for derivatives issuers and other applicable FCA regulated derivatives issuers' obligations, keeping in mind your specific circumstances, available resources and business goals.

 

Entering FCA Regulated Environment

We help businesses transition from an unregulated environment to operating under the UK derivatives issuers' licensing regime, helping them meet their obligations as a derivatives issuer's FCA authorisation holder.

We also assist already regulated businesses in aligning their existing risk and compliance management structures with the UK derivatives issuers' licensing requirements. Our focus areas for this service include:

• New businesses
• Existing derivatives issuers operating in unregulated markets
• Derivatives issuers expanding into foreign jurisdictions
• Financial institutions and/or service providers with established risk and compliance frameworks seeking to introduce derivatives trading as a new product.

 

Multi-Jurisdictional Compliance

With years of experience managing risk and compliance obligations for businesses operating under multiple financial licences across various jurisdictions, we help businesses remain compliant with FCA regulated derivatives issuers’ obligations globally.

 

Derivatives Issuer’s FCA Authorisation and Wholesale Markets

Getting a retail derivatives issuer's FCA authorisation may not always be the best fit for all. For example, a retail market expansion may not always align with your goals or the products you offer.

Operating in the wholesale environment can sometimes be a more suitable option. We offer a wider range of risk and compliance management solutions to assist derivatives issuers that:

• Operate in the wholesale markets
• Offer services to sophisticated, professional, and wholesale investors

 

Derivatives Issuers’ FCA Application

We can assist with your derivatives issuers' FCA application through ongoing engagement in the UK derivatives issuers’ FCA authorisation process:

• Document Compilation and Review: We compile and review all required supporting documents to support your derivatives issuers' FCA application.
• Application Form Completion: We assist you in completing the forms to ensure all material information is accurate and complete.
• Pre-Submission Review: We can arrange a pre-submission review session with key stakeholders to ensure all parts of your FCA application are understood and agreed upon. This session aligns application details with the actual situation, removing ambiguity.
• Regulatory Liaison: We manage the end-to-end submission process, maintaining clear and effective communication channels throughout the UK derivatives issuers’ FCA authorisation.
• Timeline Management: We closely monitor and adhere to all necessary deadlines, providing timely updates and adjustments to keep the FCA application process on track.

 

Resolving Derivatives Issuer’s FCA Authorisation Issues

Having competent compliance advisors is crucial when licensing issues arise. Therefore, our derivatives issuer's FCA authorisation solutions include a range of services to address and resolve these issues effectively:

• Remediation Solutions for Derivatives Issuers’ FCA Applicants: We address and remediate risk and compliance issues identified by regulators, helping your operations align with derivatives issuers' regime requirements.
• Specific FCA Conditions Compliance: We can help you manage additional conditions imposed on your derivatives issuer's FCA authorisation, developing a tailored action plan to maintain compliance and facilitate the eventual removal of these conditions with minimal disruption to your business operations.
• Licensing Issues Handling: We address common licensing issues encountered during the UK derivatives issuers’ FCA authorisation process, providing you with solutions to navigate and resolve these challenges efficiently.
• Further Information: You can visit our Compliance Remediation Solutions page for more information.

 

Post-Licensing Support

We offer a full range of ongoing risk and compliance solutions for licensed derivatives issuers. Our services include, but are not limited to:

Ongoing Risk and Regulatory Compliance

• FCA Regulated Derivatives Issuers' Obligations Guidance: We can advise your risk, compliance, management and other teams on meeting the requirements of the UK derivatives issuers' licensing regime  and other regulatory compliance obligations. You can visit our Compliance Consultancy Service page for more information.
• Regulatory Risk and Compliance Management: We provide dedicated compliance managers to manage your overall compliance. For more information, visit our Specialised Compliance Management Solutions page for Derivatives Issuers.
• Compliance Assurance Solutions: As part of our compliance assurance solutions, we offer:
• Compliance Assurance Program (CAP) development and testing options
• Internal Controls Design option
• Internal Controls Testing option
• Internal AML/CFT Review option
• Statutory AML/CFT Audit option
• Compliance Training Solutions: We offer training programs to different teams on complying with:
• FCA regulated derivatives issuers’ obligations for risk, regulatory compliance management, and derivatives trading regulations. You can visit our Compliance Training page for more information.
• Derivatives issuers’ AML/CFT obligations and operational best practices for fraud prevention. You can visit our AML/CFT Training page for more information.
• Crisis Management Planning: We can develop proactive strategies to manage potential compliance crises effectively.
• Anti-Money Laundering (AML) and Counter Terrorist Financing Solutions: We provide a full range of AML/CFT solutions for derivatives issuers. For more information, visit our Specialised AML/CFT Solutions page for Derivatives Issuers.
• Advanced Compliance Technologies: We can assist you with selecting and integrating advanced technology solutions, such as compliance automation tools and regulatory technology (RegTech), to streamline compliance processes without disrupting operations.
• Risk and Compliance Framework Adjustments: Including adjustments to risk management frameworks (RMFs), compliance monitoring programs (CMPs), compliance management frameworks (CMFs), and other core procedures and policies to align them with:
• new business goals
• regulatory changes
• changes in your operations
• evolving market conditions
• changes in stakeholders’ risk appetites (your banking partners, insurance companies, liquidity providers, etc.).

 

 

Risk and Compliance Obligations for Derivatives Issuers’ FCA Authorisation Holders

UK licensed derivatives issuers are subject to various obligations set out in applicable laws and regulations. They are also expected to uphold standards for their conduct and internal operations, as outlined in regulatory guidance or accepted industry practices.

We can help you address these obligations and expectations through comprehensive support in the different areas. The list below is not exhaustive:

Derivatives Issuer’s FCA Authorisation and Regulatory Compliance Obligations

• Compliance Management Systems: We can help you establish effective compliance programs, compliance monitoring plans, controls testing methodologies, compliance calendars and more (as required under SYSC 6.1).
• Risk Management Frameworks: We can help you develop comprehensive risk management frameworks to fulfil FCA regulated derivatives issuers’ obligations for identifying, assessing, and mitigating operational, regulatory, strategic, financial and other types of risks (as required under SYSC 7.1).
• Policy and Procedure Development: We can help you draft and implement policies and procedures aligned with the UK derivatives issuers’ FCA authorisation requirements.
• Compliance Monitoring Plans: We can oversee the execution of your CMPs, covering ongoing monitoring of your compliance obligations under the UK derivatives issuers' licensing regime.
• Internal Control Testing and Compliance Assurance: We can conduct internal reviews and audits of your controls to test their effectiveness and compliance with the applicable regulatory standards.
• Records Management and Accessibility: We can help you with your record-keeping requirements for management and retention of relevant records (covered under SYSC 9).
• Governance Notification Obligations: We can help you develop controls to maintain governance and compliance arrangements at or above the standards advised during licensing (covered under SUP 15).
• Regulated Counterparty Engagement: We can help you develop controls to comply with FCA regulated derivatives issuers’ obligations that restrict engagement with non-regulated financial service providers.
• Automated Trading Regulations: We can aid you in developing controls to meet automated trading regulations, including compliance with algorithmic trading rules and reporting requirements.
• Commodity Trading Regulations: Commodity Trading Regulations: We can help you establish controls to follow commodity trading regulations and obligations.
• Digital Payment Token Services: We can assist in developing controls to comply with regulations for digital payment tokens, cryptocurrencies, and digital assets, including obligations under the UK derivatives issuers' licensing regime and AML/CFT requirements for transaction monitoring and reporting.

 

Derivatives Issuer’s FCA Authorisation and Operational Oversight Obligations

• Oversight of Outsourcing: We can establish a set of effective controls to comply with UK derivatives issuers’ FCA authorisation obligations for overseeing outsourced services, also covering related obligations under AML/CFT compliance, ISO requirements, and more.
• Structures for Governance: We can help you establish effective governance structures to comply with FCA regulated derivatives issuers' obligations and develop an effective approach to overseeing your risk exposure and compliance status across different functions of your business (as required under SYSC).
• Senior Management Accountability: We can help you comply with FCA regulated derivatives issuers’ obligations for senior management and key staff conduct and competence (covered under Senior Managers and Certification Regime).
• Maintaining Operational Resilience: We assist in developing continuity plans to meet FCA regulated derivatives issuers’ obligations for operational resilience, helping critical business services withstand disruptions (as required under SYSC 15A).
• Managing Technology Risks: We provide guidance on technology risk management obligations under the UK derivatives issuers' licensing regime.

 

Derivatives Issuer’s FCA Authorisation and Market Integrity/Transparency Requirements

• Standards for Market Conduct: We can help you implement controls for FCA regulated derivatives issuers’ obligations to maintain fair and transparent market conduct, including preventing manipulation and insider trading.
• Principles for Fair Treatment: We can help you implement controls to comply with expectations that cover adherence to principles of fair treatment and transparent communications with clients (covered under FCA's fair treatment of customers).
• Standards for Conduct and Disclosure: We can help you comply with UK derivatives issuers’ FCA authorisation standards for conduct and disclosure.
• Product Suitability and Governance: We can establish tailored controls to help licensed derivatives issuers comply with product suitability and governance obligations, including risk management and governance arrangements across the product life cycle.
• Protection of Client Assets: We can help you comply with UK derivatives issuers’ FCA authorisation obligations to protect and segregate client assets.
• Resolution of Disputes: We can help you establish effective mechanisms for dispute resolution and complaints management, particularly for retail clients.

 

Derivatives Issuer’s FCA Authorisation and Resource Management Obligations

We can help you comply with the following requirements of the UK derivatives issuers' licensing regime:

• Adequacy of Resources: Covering financial, technological, human and other resources.
• Competence of Professionals: Covering key personnel, their necessary skills, knowledge, and professional competence.
• Our focus areas include:
• Assessment and Gap Analysis: We can help you evaluate the adequacy of your financial, technological, and human resources against the requirements of the licensing regime.
• Resource Allocation Plans: We can help you develop strategies to optimise resource allocation, covering sufficient capacity for compliance, trading, operations, banking, customer support and other functions and departments.
• Technological Solutions: We can recommend and implement RegTech tools to streamline compliance processes, such as transaction monitoring, reporting, and audit trails.
• Key Personnel Assessment: We can help you assess the skills, qualifications, and experience of key personnel to identify areas for improvement.
• Training and Development Programs: We can design and deliver targeted compliance training programs to upskill personnel in compliance, risk management, and derivatives trading regulations.
• Competence and Accreditations of Advisors and Representatives: We can advise you on certifications and continuing professional development (CPD) requirements for compliance professionals and senior management.
• Representative Vetting: We can help establish a framework for assessing the competence and suitability of advisors and representatives before appointment.
• Compliance Monitoring: We can help develop controls to monitor representatives' adherence to conduct and disclosure obligations.
• Ongoing Training: We can help you create a framework to support continuous education for advisors and representatives on licensing obligations, market integrity, and client interaction standards.
• Regulator Liaison: We can act as an intermediary with regulators to address queries and help you demonstrate compliance with resourcing obligations.

 

Derivatives Issuer’s FCA Authorisation and Reporting

• Regulatory Reporting: We can help you prepare and submit periodic and ad-hoc reports covering:
  • UK derivatives issuers’ FCA authorisation obligations
  • UK Derivatives issuers’ AML/CFT obligations (Suspicious Activity Reports (SARs), and other reporting obligations)
  • FCA Regulated Derivatives issuers' obligations under financial market conduct regulations
  • Specific transaction reporting to relevant depositories
• Compliance Documentation: We can help you develop and maintain the necessary documentation to meet record-keeping obligations under various laws and regulations.
• Audit Readiness: We can prepare you for audits and reviews to demonstrate compliance with regulatory requirements, provisions of the UK derivatives issuers' licensing regime, applicable operational standards, and more.

 

Jurisdictional Coverage of Our UK Derivatives Issuers’ FCA Authorisation Solution

We can help you apply for the derivatives issuer's FCA authorisation or its equivalents in the following jurisdictions:

• Australia: For more information on the United Kingdom derivatives issuers' FCA authorisation equivalent – AFSL for Derivatives Issuers, you can visit our Australian Derivatives Issuers' AFSL page.
• New Zealand: For more information on the New Zealand equivalent of the derivatives issuers' FCA authorisation– Derivatives Issuer’s FMA Licence, as well as Financial Service Provider (FSP) registration for non-retail derivatives offerings, you can visit our New Zealand Derivatives Issuer’s Licence page.
• Singapore: For more information on the Singaporean derivatives issuers' FCA authorisation equivalent – Capital Markets Services (CMS) Licence for dealing in derivatives contracts, you can visit our Capital Markets Services (CMS) Licence page.
• Other Jurisdictions: We also offer derivatives issuers’ licensing solutions for prominent financial centres and offshore tax havens, including but not limited to:

• British Virgin Islands: Where licensed derivatives issuers are supervised under the Securities and Investment Business Act, 2010 (SIBA) by the British Virgin Islands Financial Services Commission (BVI FSC).
• Cayman Islands: Where derivatives activity is regulated under the Securities Investment Business Act (2020 Revision) by the Cayman Islands Monetary Authority (CIMA).
• Seychelles: Where derivatives issuers are licensed under the Securities Act, 2007 by the Seychelles Financial Services Authority (FSA).
• Mauritius: Where derivatives dealers are licensed under the Securities Act 2005 by the Mauritius Financial Services Commission (FSC).