If you wish to provide financial services, chances are that you will require an FCA licence. If you wish to provide services such as electronic money, payment services, consumer credit, banking, insurance, mortgage, lending, investment services or claims management, you are likely to require an FCA licence.
When seeking an FCA licence, planning is key. It is important that you match the financial service you intend to provide with the FCA’s list of regulated activities.
Another important factor is to understand the scope of permissions you require. For example, if you wish to become a credit broker and refer finance applications to a lender you will require a limited permission licence. If, however, you wanted to lend your own money as a lender, you would still require a consumer credit licence, overall, but a full scope or a full permission licence would be required. Permission type is determined by the type of financial activity you wish to provide.
Another important thing you must do before making an application is to ensure you meet the FCA’s threshold conditions. What are threshold conditions, you wonder? Think of the threshold condition as the basic requirements you must have in place. For example, you will need to ensure that your ‘mind and management’, in other words, people such as directors, must be located in the UK. You will need to demonstrate through your application that you have appropriate resources to operate your business. This includes having sufficient financial, management, staff, and systems to manage your business. Your team should be suitable and competent for their roles. Your people may need to have certain qualifications. For example, financial advisors are required to hold a Level 4 Diploma in Financial Planning. It is important to check whether any qualification apply to your business or the financial service you intend to provide.
The Financial Conduct Authority expects firms to meet a range a requirements before it allows them to provide regulated financial services. When an applicant firm submits an application seeking authorisation, the FCA reviews their business plans, risks, budget, resources, systems, controls and its people. The later are expected to have the necessary qualifications, experience and ability to carry out their role effectively.
Buckingham Capital Consulting is a leading international consulting firm, specialising in payment services, electronic money, banking and investment services. We are able to advise you on the best course of action and strategy based upon your business plan and financial product or service. We can help you with licencing, compliance, operational setup and related services, including, obtaining banking facilities.
Call us today on 02078662512 or 442078662512 if you are calling from abroad. You can send an email to firstname.lastname@example.org to arrange a telephone call or to discuss your requirements and plan. We are also able to arrange calls or conference calls using Skype. Our Skype ID is BCC54321. If you wish, we can arrange a meeting at one of our offices.
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