Economy
How to Get FCA Authorization for Your Business: By Compliance Experts
Introduction
In the world of competitive and thriving markets, financial governance and clear regulations are essential. This helps protect the government and ensures to maintain reliability and trustworthiness.
As more businesses take the financial market, innovation can appear to prioritize other fundamental business considerations. The process can be too complex. Hence, many seek the help of professionals. This is where Financial Conduct Authority (FCA) compliance comes into the frame.
FCA compliance is a kind of reality check for businesses offering different financial services. It is responsible for regulating all the financial services in the UK.
This regulation helps the business with healthy competition in the market and increases the overall integrity of the financial services.
Today, we will discuss the FCA services and how you should prepare for FCA.
Who Need To Be FCA Approved?
While FCA is an important document to have, it is not necessary that every business will need one. Yes, every business can have one to solidify its credibility, but not every business will need one to operate.
Any business that intends to carry out activities specified by the Regulated Activities Order 2001 or Payment Service Regulation 2017 must obtain FCA.
Here are a few business operations that need to have FCA authorization. If your business has any one of them, then you would need FCA.
- Money institutions.
- Wholesale investment firms.
- Payment service institutions.
- Insurance intermediaries.
- Any financial services.
Generally, firms that are associated with regulated activities such as accepting deposits, issuing digital money, managing investments, or dealing in the trade market, need to be FCA authorized.
How Should You Prepare For FCA?
The FCA expects the firms to take the process seriously. They want companies to take into account that everything will meet the standard of FCA protocol. When a company applies for the FCA, FCA divides them into three categories.
- Ready
- Willing
- Organized
Ready
The FCA will consider an applicant READY if they have been preparing to submit the application. Here are the positive indicators you need to be aware of.
- Making inquiries of the FCA’s contact centre.
- Reading information from the FCA’s official website.
- Seeking legal compliance.
- Directing your regulatory obligations.
Willing
Once the phase of READY is offered, the FCA will consider the WILLINGNESS with these positive indicators.
- Being proactive in getting information on FCA.
- Be honest in your dealings with FCA.
- Demonstrating efforts to understand the FCA regulations.
- Availability of the staff to deal with inquiries.
Organized
The FCA considers you as ORGANIZED if you have prepared yourself with all the necessary documents for the applications. For instance, FCA might consider –
- The reason behind your application.
- What might act as a barrier to prevent you from doing what you have applied for?
- They see if you will be able to comply with the rules if you are authorized.
FCA’s Threshold Conditions
The FCA’s threshold conditions are set on a minimum requirement. If a business wants to be qualified for the FCA, it must meet these base minimums. Failing to meet these minimum requirements, your business will fail to achieve FCA.
The threshold conditions are as follows.
- Business model.
- Appropriate resources.
- Location of the office.
- Effective supervision.
- Suitability
After your application Is Submitted
After your application is submitted, FCA goes through the document to determine whether you meet the minimum requirement. The authorization is namely READY, WILLING, and ORGANIZED.
FCA expects the application to have all the necessary information about the business, business module, business operations, and everything to keep things transparent. This also helps the FCA determine the application and give consent.
After going through the application, if FCA feels like substantive changes need to be done, they can ask you to take back your application and make the necessary changes.
Finally, you must keep a close eye on your permission. The Financial Services Act 2021 allows FCA to modify your permission. This happens when FCA finds that you are not using your authorization properly or have diverted from out after getting the authorization.
So, avoid applying for the regulated activity that you won’t need. It will only add to your business complexities in the future. Instead, apply for FCA when you know everything about it.
How Long Does It Take To Obtain FCA?
The timeline for applying to the FCA and registration are set by the FCA. It is not a speedy process, as your business is evaluated on different levels. Depending on your business size, it can take six months or even a year.
So, instead of thinking about how to fasten the process, you must focus on preparing the right document and business modules.
Have queries? Drop them in the comment section. We will ensure every query is answered.
By Aduragbemi Omiyale
The deadline for the recapitalisation of the Nigerian pension industry has been extended by six months to June 2027 from December 2026.
This extension was approved by the National Pension Commission (PenCom), the agency, which regulates the sector in the country.
Addressing newsmen on Thursday in Lagos, the Director-General of PenCom, Ms Omolola Oloworaran, explained that the shift in deadline was to give operators more time to boost the capital base, dismissing speculations that the exercise had been suspended.
“The recapitalisation has not been suspended. We have communicated the requirements to the Pension Fund Administrators (PFAs), and we expect every operator to be compliant by June 2027. Anyone who is not compliant by then will lose their licence,” Ms Oloworaran told journalists.
She added that, “From a regulatory standpoint, our major challenge is ensuring compliance. We are working with ICPC, labour and the TUC to ensure employers remit pension contributions for their employees.”
The DG noted that engagements with industry operators indicated broad acceptance of the policy, with many PFAs already taking steps to raise additional capital or explore mergers and acquisitions.
“You may see some mergers and acquisitions in the industry, but what is clear is that the recapitalisation exercise is on track and the industry agrees with us,” she stated.
PenCom wants the PFAs to increase their capital base and has created three categories, with the first consists operators with Assets Under Management of N500 billion and above. They are expected to have a minimum capital of N20 billion and one per cent of AUM above N500 billion.
The second category has PFAs with AUM below N500 billion, which must have at least N20 billion as capital base.
The last segment comprises special-purpose PFAs such as NPF Pensions Limited, whose minimum capital was pegged at N30 billion, and the Nigerian University Pension Management Company Limited, whose minimum capital was fixed at N20 billion.
By Adedapo Adesanya
Three securities weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.68 per cent on Thursday, December 18.
According to data, Central Securities Clearing System (CSCS) Plc led the losers’ group after it slipped by N2.87 to N36.78 per share from N39.65 per share, Golden Capital Plc depreciated by 77 Kobo to end at N6.98 per unit versus the previous day’s N7.77 per unit, and FrieslandCampina Wamco Nigeria Plc dropped 19 Kobo to sell at N60.00 per share versus Wednesday’s closing price of N60.19 per share.
At the close of business, the market capitalisation lost N16.81 billion to finish at N2.147 billion compared with the preceding session’s N2.164 trillion, and the NASD Unlisted Security Index (NSI) declined by 24.76 points to 3,589.88 points from 3,614.64 points.
Yesterday, the volume of securities bought and sold increased by 49.3 per cent to 30.5 million units from 20.4 million units, the value of securities surged by 211.8 per cent to N225.1 million from N72.2 million, and the number of deals jumped by 33.3 per cent to 28 deals from 21 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc remained the most traded stock by value with a year-to-date sale of 5.8 billion units valued at N16.4 billion, followed by Okitipupa Plc with 178.9 million units transacted for N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
Similarly, InfraCredit Plc ended as the most traded stock by volume on a year-to-date basis with 5.8 billion units traded for N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.7 million, and Impresit Bakolori Plc with 536.9 million units exchanged for N524.9 million.
By Dipo Olowookere
The All-Share Index (ASI) of the Nigerian Exchange (NGX) Limited has again crossed the 150,000-point threshold on Thursday as the demand of for local intensifies.
The market was up by 0.35 per cent during the session, with the NGX index inching higher by 520.23 points to 150,363.05 points from the previous day’s 149,842.82 points and the market capitalisation climbed by N332 billion to N95.857 trillion from N95.525 trillion.
During the session, the consumer goods index grew by 1.23 per cent, the banking counter expanded by 0.56 per cent, and the energy sector appreciated by 0.05 per cent.
However, the insurance industry went down by 0.23 per cent, while the commodity and the industrial goods sectors closed flat.
Nestle Nigeria gained 10.00 per cent to trade at N1,958.00, Guinness Nigeria improved by 9.98 per cent to N289.70, Aluminium Extrusion Industries rose by 9.76 per cent to N11.25, DAAR Communications soared by 9.20 per cent to 95 Kobo, and Mecure Industries surged by 9.13 per cent to N55.00.
On the flip side, Stanbic IBTC lost 9.33 per cent to settle at N95.20, Lasaco Assurance went down by 9.09 per cent to N2.50, Africa Prudential slipped by 8.82 per cent, Austin Laz depreciated by 8.82 per cent to N12.40, and Sterling Holdings crashed by 6.12 per cent to N6.90.
There were 35 price gainers and 26 price losers yesterday, implying a positive market breadth index and bullish investor sentiment.
During the session, a total of 839.8 million equities valued at N32.8 billion exchanged hands in 23,211 deals compared with the 5.9 billion equities worth N216.2 billion traded in 25,205 deals a day earlier, indicating a decline in the trading volume, value, and number of deals by 85.77 per cent, 84.83 per cent, and 7.91 per cent apiece.
The day’s busiest stock was First Holdco with a turnover of 385.6 million units sold for N15.6 billion, FCMB traded 76.0 million units worth N805.3 million, Lasaco Assurance exchanged 43.6 million units valued at N111.8 million, Access Holdings transacted 29.6 million units worth N616.8 million, and Chams sold 24.8 million units valued at N75.4 million.
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