How to obtain authorisation in the UK?

Expanding into the UK series: How to obtain authorisation in the UK?

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) are the UK’s main financial regulators. This article sets out which regulator you need to apply to and how you can obtain authorisation.

Which regulator do I apply to?  

The identity of the regulator you should apply to will depend on the type of activities that you intend to undertake in the UK:

How do I apply to the PRA for authorisation?

To obtain authorisation from the PRA, you will have to complete the application forms on the PRA website. In support of your application, you must provide detailed information about the business you intend to undertake. This will include preparing a Regulatory Business Plan with information about your proposed activities, your structure, organisation, governance, risk and compliance arrangements, I T systems, key personnel and your controllers/beneficial owners. 

The PRA generally expects applicant firms to meet with it three times before submitting their applications. You would be expected to provide the PRA with a draft of your business plan, which will be analysed and challenged through these meetings.  

More information about the pre-application stage is available on the PRA website.

How do I apply to the FCA for authorisation? 

The FCA application process is similar to that of the PRA. You must submit your application via the FC A’s online Connect platform. In support of your application, you must provide a detailed Regulatory Business Plan, financial projections and other relevant information.  

Among other things, you must provide information about your intended activities (including financial projections and intended marketing activities), how your business is organised and operated (including in relation to its I T arrangements), information about key individuals involved in your business, owners and close links, and about your business’s risk management and regulatory compliance arrangements. You must also provide detailed information about how you will meet your prudential capital requirements.  

More information about the FCA’s approach to authorisation applications can be found here.  

What support is available? 

The PRA (in a joint initiative with the FCA) has created Start-Up Units, which are there to proactively assist applicants in understanding the regulators’ expectations and to help them through the application process. There is a New Bank Start-Up Unit and a separate New Insurer Start-up Unit. The PRA and FCA positively encourage potential applicants to contact these units, including at a time when they might only be considering whether to apply at all. The FCA offers a pre-application support service (known as PASS) which supports wholesale markets firms with their applications.

About this series of articles

The UK is a pre-eminent global financial centre and Europe’s most popular destination for financial services FDI. It offers access to global markets and unmatched connectivity, a highly skilled talent pool, a culture of innovation, and a stable and supportive regulatory regime.   

This series of articles highlights some of the regulatory requirements and practical steps you need to consider if you are looking to expand to the UK. For more detail, you can read our full guide: 'Expanding into the UK: a guide for international financial services firms'. The report is published by the City of London Corporation. The author of the report is Hogan Lovells.

The information in this article series and the ‘Expanding’ guide is provided as a general guide only and should not be relied on as a substitute for specific legal and/or other professional advice.