TRW & Co · Funds & Financial Services
FCA Authorisation Solicitors in London
FCA authorisation solicitors help businesses decide whether they need permission, choose the right regime and build an application the FCA can approve. The FCA must decide complete applications within six months and now targets four, while new regimes for cryptoassets and buy-now-pay-later are opening, so preparation and timing matter more than ever.
Key pointThe statutory clock only runs on a complete application, so the fastest authorisation is usually the one whose business plan, policies and people are final and consistent before submission.
At a glance
Statutory deadlines
Section 55V of FSMA requires the FCA to decide complete applications within six months and incomplete ones within 12 months.
Faster FCA targets
Since January 2026 the FCA measures itself against targets of four months for complete and ten months for incomplete new applications.
Threshold conditions
Firms must continuously meet Schedule 6 conditions on location of offices, effective supervision, resources, suitability and business model.
Crypto application window
Cryptoasset firms can apply between 30 September 2026 and 28 February 2027, ahead of the new regime going live on 25 October 2027.
Change in control
The FCA has up to 60 working days to assess a complete change in control notice; acquiring control without approval is a criminal offence.
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What FCA authorisation solicitors do, and when you need one
FCA authorisation solicitors help businesses obtain the regulatory permission they need to carry on financial services in the UK, and help authorised firms change or extend that permission. The work starts before any application: confirming whether authorisation is actually needed, choosing the right regime and permissions, and building a business that will satisfy the FCA from the first day of authorisation.
Clients include fintech start-ups, wealth and investment managers, consumer lenders and brokers, insurance intermediaries, payment and e-money firms, cryptoasset businesses, overseas firms opening a UK presence and investors acquiring a regulated business. Each faces the same underlying test: can the firm show the FCA that it meets the threshold conditions, has suitable people in charge and is ready to comply?
The process is demanding. The FCA expects final, board-approved documents rather than drafts, and its own guidance warns that approval is unlikely on the first round of questions. Applications that are incomplete, generic or inconsistent are slowed down, rejected or withdrawn. Good preparation is the most effective way to shorten the timetable.
The legal framework for authorisation
Section 19 of the Financial Services and Markets Act 2000 (FSMA) prohibits carrying on a regulated activity in the UK unless the person is authorised or exempt. Breaching the general prohibition is a criminal offence, and agreements made in the course of it may be unenforceable. Firms obtain permission under Part 4A of FSMA, and the regulated activities are defined in the Regulated Activities Order 2001.
The FCA must decide a complete application within six months and any application within 12 months, under section 55V of FSMA. Throughout, the firm must meet the threshold conditions in Schedule 6 to FSMA, which the FCA explains in its COND sourcebook. The Perimeter Guidance Manual (PERG) helps determine whether an activity is regulated at all.
Separate regimes
Not every financial business uses Part 4A. Payment institutions are authorised or registered under the Payment Services Regulations 2017 and e-money institutions under the Electronic Money Regulations 2011. Cryptoasset exchange and custody businesses currently register with the FCA under the Money Laundering Regulations 2017, pending the new FSMA cryptoasset regime. Banks, insurers and certain large investment firms are dual-regulated, so the Prudential Regulation Authority leads the application with FCA consent. FSMA applies across the UK, so the same regime applies in England and Wales, Scotland and Northern Ireland.
Choosing the right route to market
Before drafting anything, FCA authorisation solicitors should map the business model against the available routes. The fastest route is not always the cheapest over time, and some routes limit what the business can do.
| Route | Suitable for | Indicative timeline | Trade-off |
|---|---|---|---|
| Full Part 4A authorisation | Investment, lending, insurance distribution, fund management and most other regulated activities | Statutory deadline: 6 months if complete, 12 months if not | Full control and direct FCA relationship; highest preparation and ongoing cost |
| Variation of permission | Authorised firms adding activities or removing restrictions | Same statutory deadlines; faster FCA targets where the change is close to the existing model | Builds on existing framework; FCA reviews readiness for the new activity |
| Appointed representative | Firms operating under an authorised principal's responsibility | Set by the principal's onboarding process | Quick to start; principal controls and charges; some activities unavailable |
| Payment or e-money institution | Payment services, money remittance, e-money issuance | FCA aims for 3 months for complete applications | Capital and safeguarding requirements; separate from FSMA permissions |
| Cryptoasset authorisation | Trading platforms, dealing, custody, staking and stablecoin issuance | Application window from 30 September 2026 to 28 February 2027; regime live 25 October 2027 | New regime; existing MLR registration does not carry over automatically |
| Consumer credit (BNPL) temporary permission | Third-party deferred payment credit lenders | Regulated from 15 July 2026; temporary permission then full application | Allows trading while the full application is decided |
For payments and e-money, see our payments and e-money page and our guide to the EMI licence. Cryptoasset firms should read our UK cryptoasset regulation guide and speak to our cryptoassets team, as the application window is open now.
Appointed representatives
An appointed representative operates under the responsibility of an authorised principal, which must oversee it under section 39 of FSMA and the FCA's appointed representatives rules. It can be an efficient way to launch and build a track record. The FCA has tightened expectations of principals, however, so expect thorough due diligence and ongoing monitoring, and plan how you will eventually move to full authorisation.
Variations of permission
Authorised firms that want to add activities, serve retail customers for the first time, hold client money or remove a requirement apply for a variation of permission. The FCA treats a significant variation much like a new application: it will want an updated business plan, evidence that the firm has the resources and expertise for the new activity, and confirmation that the senior manager responsibilities cover it. FCA authorisation solicitors can help scope the variation so it is no wider than needed, which tends to reduce questions and time.
The threshold conditions and what they mean in practice
The threshold conditions are the minimum standards for authorisation and must be met continuously. For firms regulated only by the FCA, the main conditions are:
- Location of offices: a UK company must have its head office, and in particular its mind and management, in the UK. Overseas groups need real UK decision-making, not a letterbox.
- Effective supervision: the firm's structure, group and close links must not prevent the FCA supervising it effectively.
- Appropriate resources: adequate financial and non-financial resources, including capital, liquidity, people and systems, for the business planned.
- Suitability: the firm must be fit and proper, with competent and honest management and appropriate controls.
- Business model: a suitable strategy that is sustainable and takes account of the interests of consumers and the integrity of the UK financial system.
Dual-regulated firms also face PRA threshold conditions. FCA authorisation solicitors spend much of an engagement turning these abstract tests into evidence: a credible business plan, realistic financial projections, a governance structure with genuine UK oversight and policies tailored to the firm.
The FCA authorises the firm it sees on paper. If the documents describe a generic firm, the questions will be about what the real one actually does.
The application process step by step
The FCA's how to apply guidance describes the formal steps. In practice, a well-run application looks like this:
- Perimeter and permissions analysis. Confirm which activities, investment types and customer types the firm needs, and whether any exclusion, exemption or alternative regime applies.
- Pre-application engagement. Consider a free meeting through the FCA's Pre-Application Support Service, which is open to consumer investment, insurance intermediary, payments, wholesale and cryptoasset firms, and to proposed acquirers.
- Build the firm. Appoint the board and senior managers, secure capital and professional indemnity insurance where required, and put systems, outsourcing and banking arrangements in place or contracted.
- Prepare the application pack. Draft the regulatory business plan, financial projections, policies and procedures, and the individual and controller forms. Make sure everything is final and consistent.
- Submit and pay. File through the FCA's Connect system and pay the application fee. Rejected applications missing minimum information are refunded; withdrawn and refused ones are not.
- Respond to the case officer. Expect detailed questions, document requests and sometimes interviews with senior managers. Respond promptly, accurately and consistently.
- Decision and go-live. If approved, the firm appears on the Financial Services Register with a firm reference number. Some approvals come with requirements or restrictions that must be satisfied before or after go-live.
Our article on the FCA authorisation process goes into each stage in more depth.
Documents, people and controllers
The application pack
- Regulatory business plan describing products, customers, distribution, revenue model and risks.
- Financial projections with base and stress scenarios, and the capital and liquidity calculations required for the firm type.
- Wind-down plan explaining how the firm would close in an orderly way.
- Governance structure, board and committee terms of reference, and the management responsibilities map.
- Compliance monitoring plan, risk management framework and policies on financial crime, conflicts, complaints, the Consumer Duty and outsourcing.
- IT, cyber security and operational resilience arrangements.
- Controller and close links information, with group structure charts.
Senior managers and controllers
Under the Senior Managers and Certification Regime, individuals performing senior management functions need FCA (and in some cases PRA) approval. Applications must show each candidate's competence and propriety, with criminal records checks; the FCA's guidance says checks for individual controllers should be no more than six months old at application. The 2026 SM&CR changes give firms more flexibility on replacement applications and directories, but approval remains a core part of authorisation.
Anyone acquiring or increasing control of an authorised firm above the statutory thresholds needs prior approval. The FCA has up to 60 working days from a complete change in control notification, and acquiring control without approval is a criminal offence under section 191F of FSMA. Investors should build this into deal timetables.
Timelines and the push for faster decisions
The statutory deadlines are six months for complete applications and 12 months for incomplete ones. In 2025 the FCA set itself faster targets: four months for complete and ten months for incomplete new authorisations and variations, which the Government has consulted on putting into statute; voluntary targets of three and six months for variations closely matching the existing model; and faster handling of senior manager applications. The FCA began measuring performance against these targets from January 2026.
The FCA has also discussed provisional, time-limited permissions for some new firms, but that would require primary legislation. Until the law changes, plan on the statutory deadlines and treat the targets as an upside.
Costs to budget for
Beyond the FCA application fee, which depends on the type of application, applicants should budget for the time of senior managers and staff, professional advice, capital that must be held from authorisation, professional indemnity insurance where required, systems and outsourcing, and periodic FCA and Financial Ombudsman Service levies once authorised. Building these into the financial projections is itself part of demonstrating appropriate resources, so unrealistic budgets are a common source of case officer questions.
The statutory clock for a "complete" application only starts when the FCA has everything it needs. Answering questions slowly, changing the business model mid-application or replacing a proposed senior manager can all extend the process. Lock the business plan before you submit, and make sure the people named in the application are committed to the firm.
Risks and common mistakes
Submitting a generic or inconsistent application
Template policies and business plans that do not reflect the firm's real products, customers and risks are one of the most common reasons for delay. Case officers cross-check documents against each other and against other regulators' information. If the business plan describes one distribution model and the financial projections assume another, expect detailed questions. Tailor every document, check consistency across the pack and ensure the board has genuinely reviewed and approved it.
Under-resourcing compliance and the board
The FCA expects firms to have adequate non-financial resources from day one. A part-time compliance officer with no relevant experience, or a board without independent challenge, will raise suitability concerns. The right resourcing depends on the firm's size and risk, but senior managers must be able to show they understand the regulatory requirements of their roles and have the time to perform them. Outsourcing compliance support is acceptable, but responsibility stays with the firm.
Trading before authorisation
Firms sometimes start marketing, onboarding customers or taking deposits while their application is pending. That can breach the general prohibition or the financial promotion restriction, and the FCA will treat it as a serious suitability issue. Until authorisation is granted, limit activity to genuinely unregulated preparation, and take advice before any customer-facing communication. If an appointed representative arrangement is used in the interim, it must be properly documented and overseen.
Overlooking controllers and close links
Every person who will control the firm, directly or indirectly, must be identified and assessed, including fund investors, trusts and ultimate beneficial owners. Undisclosed or unclear ownership can stop an application. Complex or offshore structures need careful explanation, with evidence of source of funds and wealth. Prepare structure charts and controller information early, as this is often the slowest part to assemble.
Neglecting post-authorisation obligations
Authorisation is the start, not the end. New firms face early supervisory contact, regulatory reporting, fees, the Consumer Duty and any requirements attached to their permission. Firms that relax after approval and drift from the business plan they presented risk early intervention. Build a compliance calendar before go-live and notify the FCA of material changes to the business.
Overseas applicants: Bangladesh, the EU, the Gulf and Singapore
Overseas groups usually choose between a UK subsidiary and a UK branch. A subsidiary is a separate legal entity with its own capital and governance; a branch is part of the overseas firm and depends heavily on the home regulator's supervision. For banks the PRA has its own expectations on branches and subsidiaries, and for many retail businesses the FCA prefers a subsidiary. Either way, the location of offices condition requires genuine UK decision-making.
Bangladeshi banks, exchange houses and remittance businesses serving the UK diaspora commonly need payment institution authorisation or a Part 4A permission, plus robust AML controls for the UK–Bangladesh corridor. Bangladesh Bank's approval may be needed for the outward investment to establish and capitalise a UK entity. Our UK–Bangladesh trade and finance team coordinates with our Dhaka office on both sides.
EU firms that previously relied on passporting now need UK authorisation for continuing UK business. Gulf and Singapore firms often hold licences from the DFSA, FSRA or MAS; that history helps but does not substitute for meeting the FCA's own tests. FCA authorisation solicitors with offices in Dubai and Singapore can help align the overseas and UK applications.
How TRW & Co's FCA authorisation solicitors help
TRW & Co's London office is authorised and regulated by the Solicitors Regulation Authority. We prepare and manage applications with the client's management team and, where useful, compliance consultants and accountants.
Perimeter opinions
We confirm whether authorisation is needed, which permissions fit the business model and whether an alternative route, such as an appointed representative arrangement, makes sense.
Application drafting
We draft and review the regulatory business plan, policies and governance documents, and check the whole pack for consistency before submission.
Managing the FCA process
We handle pre-application meetings, case officer questions and interviews, and advise on any requirements or restrictions proposed.
Senior managers and controllers
We prepare senior manager applications and change in control notifications, and advise individuals on their responsibilities and personal exposure.
Variations and new regimes
We advise authorised firms on variations of permission and on new regimes, including cryptoassets, BNPL and the proposed AIFM regime, with our investment funds colleagues.
Life after authorisation
We support new firms through their first supervisory contact and ongoing compliance, working with our financial services regulation and fintech teams.
See the full range of our work on our practices page.
Checklist before you apply
- Have we confirmed exactly which regulated activities, investments and customer types we need?
- Is Part 4A, a payments or e-money licence, an appointed representative arrangement or another route the best fit?
- Are our board and senior managers appointed, committed and able to evidence competence?
- Are capital, insurance, banking and key outsourcing in place or contracted?
- Is our business plan specific, final and consistent with our financial projections and policies?
- Do we have complete controller and close links information, with source of funds evidence?
- Have we considered a pre-application meeting with the FCA?
- Do we have a plan for go-live, early supervision and the Consumer Duty?
To discuss an application with FCA authorisation solicitors at TRW & Co, contact us at info@trw.co or +880 1779 127165, or visit Holborn Gate, 330 High Holborn, London WC1V 7QH.
Frequently asked questions
01How long does FCA authorisation take?
By law the FCA must decide a complete application within six months and any application within 12 months. Since January 2026 it has measured itself against faster targets of four months for complete and ten months for incomplete new applications, and the Government has consulted on making those statutory. Payments and e-money applications have a three-month target for complete applications. In practice, timing depends on the quality of the application and how quickly the firm answers questions.
02What does the FCA look for in an application?
The FCA assesses whether the firm will meet the threshold conditions: UK mind and management, effective supervisability, adequate financial and non-financial resources, suitability and a sustainable business model. It also assesses the competence and propriety of senior managers and the suitability of controllers. Applications should be specific to the firm, final and consistent across the business plan, financial projections and policies. The FCA expects firms to be ready to comply from the first day of authorisation.
03Can we start trading while our application is pending?
Not in regulated activities. Carrying on a regulated activity without permission breaches the general prohibition in section 19 of FSMA, which is a criminal offence and can make agreements unenforceable. Firms may carry out genuinely unregulated preparatory work. Some businesses operate as an appointed representative of an authorised principal in the meantime, and new regimes such as BNPL have temporary permission arrangements. Take advice before any customer-facing activity or marketing.
04Is becoming an appointed representative a good alternative?
It can be. An appointed representative operates under the responsibility of an authorised principal, so it can start sooner and avoid much of the cost of full authorisation. However, the principal controls the arrangement, charges fees and must oversee the representative closely, and some activities cannot be carried on as an appointed representative. Many firms use it as a stepping stone to their own authorisation. Check the principal's capabilities and the exit terms carefully.
05Do our directors need FCA approval?
Individuals performing senior management functions under the Senior Managers and Certification Regime need prior approval, which is usually sought alongside the firm's application. Each candidate must show competence and propriety, supported by a criminal records check and references. Other staff may fall within the certification regime, which the firm itself manages. The FCA aims to complete at least half of senior manager applications within 35 days, and the Government has consulted on a shorter statutory deadline.
06How does the new cryptoasset regime affect existing registered firms?
Existing Money Laundering Regulations registration does not automatically become authorisation under the new FSMA cryptoasset regime. Firms that want to carry on the new regulated cryptoasset activities after 25 October 2027 need to apply, and the FCA's application window runs from 30 September 2026 to 28 February 2027. Applying within the window is expected to matter for transitional arrangements. Firms should map their activities against the new regulated activities now.
Sources and official materials
- FSMA 2000, section 55V — Statutory deadlines for determining applications
- FSMA 2000, Schedule 6 — Threshold conditions
- FCA: How to apply for authorisation — Application steps, fees and expectations
- FCA: Pre-Application Support Service — Free pre-application meetings
- FCA sets faster targets for authorisations — New target timelines measured from January 2026
- FCA: Change in control — Approval for acquiring control of authorised firms
- FCA: Appointed representatives and principals — Rules for AR arrangements
General information only, current as at 21 October 2026. It is not legal advice and does not create a solicitor–client relationship. It reflects the law of England and Wales unless stated otherwise; Scotland and Northern Ireland have separate legal systems, and the law changes frequently. Check current official sources and take advice on the facts of your matter.