To undertake general insurance distribution, consumer credit, payments or other regulated activities a firm will need to apply for and be granted authorisation from the FCA. There are four steps that firms seeking FCA authorisation need to follow:
- Decide on what permissions you need and prepare and collect the supporting documents;
- Prepare and complete your application. Applications are now completed and submitted on-line via FCA’s Connect system. You will therefore need to register with Connect at https://www.fca.org.uk/firms/connect/registration
- Complete the additional forms required such as approved persons forms, controller forms and IT self-assessment forms
- Once all the forms have been completed and the supporting documentation attached to the application form you can submit the application to the FCA via Connect. You will need to pay the non- refundable application fee by credit or debit card as part of the application submission process, which for straightforward applications is £1,500 and the required supporting documents.
- Staff organisation charts
- Curriculum Vitae (for Approved Persons)
- Business plan information (not applicable for Connected Travel Insurance firms).
- Compliance monitoring programme
- Details of professional advisors.
- An opening balance sheet.
- A forecast closing balance sheet after 12 months’ trading or first year’s trading.
- A monthly profit and loss account for the first year’s trading.
- A monthly cash-flow forecast.
- A copy of the latest annual accounts (if previously traded).
- A professional indemnity insurance quotation.
Other documents which do not need to be submitted with the application but must be self-certified as “created and ready to be inspected” include:
- Full Business Continuity procedures
- Subordinated loan agreements
- Documented compliance procedures
- Compliant Training & Competence procedures
- Procedures for conflicts of interests o Compliant Terms of Business
- Initial Disclosure Document
In addition the following documents will be required: