Why leading firms choose us as their partner.
Buckingham Capital Consulting's team of compliance experts has played a pivotal role in helping us develop and enhance our compliance practices, particularly in relation to the consumer duty outcomes. Their comprehensive knowledge of conduct regulations, fair treatment of customers, and risk management has enabled us to establish robust compliance frameworks.
Their guidance and support in conducting compliance risk assessments, implementing monitoring processes, and developing effective policies and procedures have been instrumental in ensuring our adherence to regulatory requirements. They have provided us with practical solutions tailored to our business needs, enabling us to consistently deliver fair and transparent services to our customers.
Our services for credit institutions
FCA licence authorisation
Our comprehensive support includes assisting credit institutions in preparing and submitting a well-documented authorisation application that meets all regulatory requirements.
Regulatory Compliance Framework
We can help develop robust frameworks that address the specific regulatory obligations of the FCA and PRA, providing guidance on policies, procedures, controls, and reporting mechanisms to ensure effective compliance management.
Consumer Duty Support
Buckingham Capital Consulting helps credit institutions navigate the FCA's Consumer Duty, ensuring they meet regulatory standards and treat customers fairly. Our expertise promotes transparency and responsible lending, building trust and fostering a customer-centric approach.
Compliance Reviews
Our comprehensive compliance reviews evaluate the adherence of credit institutions to regulatory requirements, identifying potential gaps and areas for improvement, and providing practical recommendations to enhance compliance frameworks and mitigate risks.
Training and Education
We deliver tailored training programs designed to enhance staff knowledge and understanding of regulatory compliance obligations, covering a wide range of topics, including regulations, conduct standards, reporting obligations, and best practices in compliance.
Regulatory Reporting
We provide comprehensive support with regulatory reporting obligations, including data collection, validation, report preparation, and submission, ensuring compliance with regulatory requirements.
Seeking something more bespoke or not listed above? Contact us to discuss your unique requirements. With our expertise and experience in financial services, chances are we can assist you effectively.
Licence authorisation guide for banks
Introduction
At Buckingham Capital Consulting, we help firms in obtaining FCA and PRA licence authorisation and ensuring compliance with regulatory requirements. Our team of experts possesses a deep understanding of the regulatory landscape governing credit institutions in the UK, enabling us to provide the expertise needed to obtain and maintain a credit institution licence.
Understanding the Regulatory Landscape
Obtaining a credit institution licence requires a deep understanding of the regulatory framework in the UK. The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) serve as the regulatory authorities responsible for authorisation and supervision, ensuring compliance with regulatory standards.
Regulatory Handbook
Successfully obtaining a credit institution (bank) licence requires a thorough understanding of the regulatory landscape. Key resources to consult include the Prudential Sourcebook for Banks, Building Societies, and Investment Firms (BIPRU), the Financial Conduct Authority Handbook (FCA Handbook), and the PRA Rulebook. These essential references detail prudential and conduct requirements, capital adequacy ratios, liquidity standards, risk management frameworks, and customer protection provisions. By studying these handbooks meticulously, you can ensure compliance and enhance your chances of a successful licence application.
Role of the FCA and PRA
The FCA focuses on regulating the conduct of credit institutions, ensuring fair treatment of customers, and maintaining market integrity. The PRA's primary objective is prudential regulation, including capital adequacy, risk management, and financial stability. Both regulators play a crucial role in the licence authorisation process, reviewing applications and ensuring compliance with relevant regulations.
Application Process for Credit Institution Authorisation
The application process for a credit institution licence involves several key stages, each requiring meticulous attention to detail and preparation.
Pre-application Authorisation Stage
Prior to submitting your licence application, it is important to develop a comprehensive business plan that outlines your institution's objectives, market analysis, risk management strategies, financial projections, and compliance policies. This plan should clearly demonstrate how your institution will comply with regulatory requirements and safeguard the interests of customers.
Authorisation Application Documentation
Your application should include a range of supporting documentation that demonstrates your institution's readiness to operate as a credit institution. This will include:
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Business Plan: Provide a detailed overview of your institution's business model, target market, risk management strategies, and financial projections. Clearly outline how you will comply with regulatory requirements and maintain customer protection.
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Organisational Structure: Outline your institution's governance structure, including board composition, senior management roles, and responsibilities. Highlight the measures in place to ensure effective risk management, compliance, and internal controls.
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Compliance Policies and Procedures: Develop robust policies and procedures that address regulatory requirements such as anti-money laundering (AML), customer due diligence, complaint handling, data protection, and financial crime prevention. Showcase your institution's commitment to regulatory compliance and its ability to manage compliance risks effectively.
Capital Adequacy Assessment for Credit Institutions
The regulators will assess your institution's initial and ongoing capital adequacy to ensure financial stability. This assessment involves evaluating your financial projections, capital adequacy ratios, liquidity management, and stress testing frameworks. It is essential to demonstrate your institution's ability to meet capital requirements and maintain adequate financial resources throughout its operations.
Regulatory Compliance Assessment
Your application will be thoroughly reviewed to ensure compliance with regulatory requirements and standards. This includes assessing your institution's ability to meet Threshold Conditions, which encompass various requirements covering financial soundness, risk management, governance, and systems and controls. Additionally, compliance with the FCA's Conduct of Business Sourcebook (COBS) is crucial, ensuring fair treatment of customers, appropriate disclosure, product governance, and effective customer communication.
Application Fees and Waiting Times for Credit Institutions
Application fees for a credit institution licence vary based on the complexity and size of your institution. The FCA provides a current fee schedule for reference.
Waiting times for licence approval can vary depending on the completeness of your application, regulatory workload, and any additional information requests. It is important to consider potential waiting times and plan your licensing timeline accordingly.
Our Authorisation Services for Credit Institutions
At Buckingham Capital Consulting, we offer comprehensive licence authorisation services tailored to the unique needs of credit institutions:
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Application Preparation and Review: Our experienced team will guide you through the entire application process, providing assistance in preparing and reviewing all required documentation. We ensure that your application is complete, accurate, and tailored to meet the specific requirements of the regulators.
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Regulatory Compliance Framework: We help you develop a robust regulatory compliance framework aligned with the FCA Handbook, Prudential Sourcebook, and PRA Rulebook. Our services include developing policies, procedures, and systems to ensure compliance with prudential and conduct obligations.
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Capital Adequacy Assessment: Our experts assess your institution's capital adequacy requirements, including initial and ongoing capital, to ensure compliance with prudential regulations. We provide guidance on capital planning, stress testing, and risk management to support your institution's financial stability.
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Regulatory Compliance Support: We offer ongoing support and guidance to ensure ongoing regulatory compliance. Our services include periodic compliance reviews, regulatory updates, and assistance in implementing changes to regulatory requirements.
Conclusion
Obtaining authorisation as a credit institution in the UK requires thorough preparation, adherence to regulatory requirements, and careful navigation of the licensing process. Our tailored services and in-depth knowledge of regulatory requirements will help you prepare a strong application, develop a robust compliance framework, and ensure ongoing regulatory compliance. We are dedicated to supporting you throughout the entire licence authorisation process, enabling your institution to operate successfully in the dynamic banking industry.