As more and more international firms are expected to be looking to become authorised and provide services in the UK, the FCA has published their approach to authorising and supervising them. The document has been prepared following the responses of the FCA’s consultation, published last September, on their approach to international firms.
This approach is for international firms that:
- intend to apply for authorisation in the UK
- have applied for authorisation in the UK
- are already authorised in the UK
The publication addresses how the FCA will assess international firms when they apply for authorisation to operate in the UK market. International firms serving UK customers can sometimes create different risks of harm compared to UK firms because of the way their businesses are structured and operate. The FCA’s document sets out how these risks may be mitigated, and the factors that these firms need to take into account when deciding whether it may be more appropriate for an international firm to seek authorisation as a UK incorporated firm for all or part of its business.
The FCA expects firms seeking authorisation to have an active place of business in the UK to enable it to effectively supervise its UK activities.
Nausicaa Delfas, Executive Director of International at the Financial Conduct Authority, said:
‘Our approach to authorising international firms, including EEA firms currently in the Temporary Permissions Regime, is to mitigate the risks of harm to UK customers and ensure market integrity.
‘Any firm intending to apply for FCA authorisation, should take note of our expectations set out in the approach document and be ready to meet our standards.’
To read the full FCA approach document, click here.
If you would like more information on how we can support your business in gaining FCA compliance, contact us here.