FCA Authorisation Solutions for the UK Regulated Firms and Financial Institutions | Pre-licensing FCA Authorisation Support | FCA Authorisation Application Management | Post-licensing Risk and Compliance Solutions

FCA Authorisation Preparation

Pre-licensing Compliance Assurance

Our FCA CIS authorisation solutions cover the following focus areas:

• Compliance Goals Analysis: We review your business-specific goals and resources against the suitability criteria for the FCA licensing regime
• Initial Consultation: We provide guidance on potential risk and compliance issues that may arise during the FCA authorisation process
• Choosing the Right Jurisdiction: We assist in evaluating regulatory, risk, and compliance environments to determine the most suitable jurisdictions for your FCA CIS 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
• FCA Authorisation Application Plan: We help you establish a roadmap to effectively meet the FCA authorisation requirements

 

 

 

 

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 FCA CIS authorisation solution covers:

• Compliance Model Selection: To help you best comply with the FCA 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 FCA licensing regime, keeping in mind your specific circumstances, available resources and business goals.

 

Entering the FCA Regulated Environment

We help businesses transition from an unregulated environment to operating under the FCA licensing regime, helping them meet their obligations as FCA CIS authorisation holders.

We also assist already regulated businesses in aligning their existing risk and compliance management structures with the requirements of the FCA licensing regime.

Our focus areas for this service include:

• New businesses
• Existing MIS managers operating in unregulated markets
• Regulated MIS managers expanding into foreign jurisdictions
• Financial institutions and/or service providers with established risk and compliance frameworks seeking to introduce regulated custody services trading as a new product.

 

FCA Authorisation and Wholesale Markets

Securing FCA authorisation for operating a retail collective investment scheme (CIS) may not always align with your business objectives. If your strategy is focused on engaging professional or wholesale investors rather than the broader retail market, pursuing retail product authorisation might not be the best fit.

In the UK, regardless of whether you serve retail or wholesale clients, any firm undertaking regulated activities must obtain authorisation under Part 4A of FSMA. However, if your business exclusively targets wholesale (i.e. professional, eligible, or institutional) investors, you can structure your activities and marketing accordingly so that you avoid many of the retail-specific product disclosure and client protection obligations.

We provide a broad range of risk and compliance management solutions to support UK regulated firms that:

• Focus exclusively on wholesale markets by targeting sophisticated, eligible, and professional investors.

• Operate under the framework for regulated activities using firm-level authorisation (via FCA Part 4A permissions) rather than pursuing retail FCA authorisation.

• Align their operations with the requirements set for non-retail services while still meeting the full set of regulated activities.

Our services help these firms comply with regulatory requirements that extend beyond the product authorisation itself, including:

• Complying with FCA Advertising Rules.

• Adhering to fair dealing and client communication standards.

• Implementing robust risk management frameworks.

• Overseeing outsourced service providers effectively.

• Ensuring the firm does not inadvertently offer regulated services to retail investors without the appropriate permissions.

• Meeting obligations under Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) laws.

• Complying with data management and other relevant legislative requirements.

FCA Authorisation Application

We assist with your licence application through ongoing engagement in the FCA authorisation process:

• Document Compilation and Review: We compile and review all required supporting documents to support your FCA authorisation application.
• Application Form Completion: We help you complete the forms so that 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 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 ASIC licensing process.
• Timeline Management: We closely monitor and adhere to all necessary deadlines, providing timely updates and adjustments to keep the application process on track.

 

Resolving MIS Manager’s FCA Authorisation Issues

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

• Remediation Solutions for FCA CIS Authorisation Applicants: We address and remediate risk and compliance issues identified by regulators, helping your operations align with the requirements of the FCA licensing regime.
• Specific Licence Conditions Compliance: We can help you manage additional conditions imposed on your FCA CIS 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 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 ASIC-licensed MIS managers. Our services include but are not limited to:

Ongoing Risk and Regulatory Compliance

• FCA-Regulated Firms’ Obligations Guidance: We can advise your risk, compliance, management and other teams on meeting the requirements of the FCA licensing regime and other regulatory compliance obligations. You can visit our Compliance Advisory 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.
• 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 Authorised Regulated Firms’ obligations for risk and regulatory compliance management. You can visit our Compliance Training page for more information.
• FCA Authorised Regulated Firms’ 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 MIS providers. For more information, visit our Specialised AML/CFT Solutions page.
• 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 FCA Authorised Regulated Firms

FCA Authorised regulated firms 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 different areas. The list below is not exhaustive:

FCA CIS 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 (covered under SYSC 6.1).
• Risk Management Frameworks: We can help you develop comprehensive risk management frameworks to fulfil FCA authorised regulated firms' obligations for identifying, assessing, and mitigating operational, regulatory, strategic, financial and other types of risks (covered under SYSC 7.1).
• Policy and Procedure Development: We can help you draft and implement policies and procedures aligned with the FCA authorisation requirements.
• Compliance Monitoring Plans: We can oversee the execution of your CMPs, covering ongoing monitoring of your compliance obligations under the FCA 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.
• Capital Adequacy Requirements: We can help you implement controls to comply with capital adequacy requirements, helping your businesses meet FCA Authorised regulated firms’ obligations for maintaining required financial resources (covered under IFPR).
• Liquidity Management Requirements: We can assist you in developing controls to comply with liquidity management requirements (covered under FUND 3.6.2R for AIFMs and COLL 6.6.3R for UCITS schemes).
• Financial Auditing Standards: We can assist in establishing procedures to help you comply with the audit and assurance requirements under the FCA licensing regime.
• 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 FCA licensing regime and AML/CFT requirements for transaction monitoring and reporting.
• Compliance with Constitution and Compliance Plan Obligations: We can help you implement controls to support your compliance with the MIS constitution and compliance plan obligations, including procedures for scheme operations, monitoring mechanisms, and required documentation to meet ASIC’s expectations for Responsible Entities under the Corporations Act.
• 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).

 

FCA CIS Authorisation and Operational Oversight Obligations

• Oversight of Outsourcing: We can establish a set of effective controls to comply with FCA authorisation requirements 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 authorised regulated firms' obligations and develop an effective approach to overseeing your risk exposure and compliance status across different functions of your business.
• Senior Management Accountability: We can help you comply with FCA authorised regulated firms' 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 authorised regulated firms' obligations for operational resilience, helping critical business services withstand disruptions.
• Managing Technology Risks: We provide guidance on technology risk management obligations under the FCA licensing regime.

 

FCA CIS Authorisation and Market Integrity/Transparency Requirements

• Standards for Market Conduct: We can help you implement controls for FCA authorised regulated firms' 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 FCA authorisation standards for conduct and disclosure.
• Product Suitability and Governance: We can establish tailored controls to help FCA authorised regulated firms' obligations 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 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.

 

FCA CIS Authorisation and Resource Management Obligations

We can help you comply with the following requirements of the FCA 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 compliance 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.

 

FCA CIS Authorisation and Reporting

• Regulatory Reporting: We can help you prepare and submit periodic and ad-hoc reports covering:
  • UK Regulated Firms FCA Authorisation Obligations
  • UK Regulated Firms AML/CFT Obligations (SMRs, cross-border transaction reports (IFTIs), cash transaction reports TTRS, and other reporting obligations)
  • FCA Authorised Regulated Firms' obligations under the financial markets' conduct-related regulations 
• 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 FCA licensing regime, applicable operational standards, and more.

 

 

Related Licensing Solutions 

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 the financial licensing obligations globally. We assist in obtaining FCA CIS authorisation equivalents in the following jurisdictions:

• Australia: For more information on the Australian FCA authorisation equivalent – AFLS Licence, you can visit our AFSL Solutions page.
• New Zealand: For more information on the New Zealand equivalent of the FCA authorisation– FMA Licence, as well as Financial Service Provider (FSP) registration for non-retail offerings, you can visit our FMA Licensing Page or our FSP registration page.
• Singapore: For more information on the Singaporean FCA authorisation – Capital Markets Services (CMS) Licence, you can visit our Capital Markets Services (CMS) Licence page, for other types of Singaporean financial licences you can visit our MAS licensing page.
• Other Jurisdictions: We also offer licensing solutions for prominent financial centres and offshore tax havens, including but not limited to:

• British Virgin Islands
• Cayman Islands:
• Seychelles
• Mauritius
  
• Gibraltar
• Belize
• Malta
• Vanuatu