We have been assisting clients obtain FSA authorisation (known as Part IV Permission) since our earliest days and it remains one of our most sought-after services. We regularly advise start up businesses on structuring their proposed regulated activities and making the appropriate applications, and as the scope of regulation has widened to cover mortgage and insurance mediation we have helped many established businesses with the process of becoming authorised and setting up the associated systems and controls. Over the last two years we have assisted over 50 firms - both large and small, from many different sectors - obtain FSA authorisation for a wide variety of regulated activities.
The authorisation process involves much more than just filling in FSA forms: firms seeking Part IV permission need to put in place the systems and controls and compliance procedures and documentation appropriate to the activities that they propose to undertake and the FSA may require to see some or all of this material with the application.
We can provide as much or as little help as you need: some clients ask us just to review material which they themselves have produced; but if required we can play a much larger part in helping you develop your procedures and drafting the appropriate documentation, preparing financial models and forms for sign-off; and generally coordinating the entire process. In all cases we aim to ensure that our clients' applications are as complete as possible at the submission stage and we maintain close links with the FSA's authorisation staff to ensure – as far as we are able - that any requests for further information are processed quickly and efficiently.
Appointed Representative arrangements may provide a viable alternative to full authorisation in some circumstances. We can advise on the pros and cons of such arrangements in various different circumstances, and can assist with the drafting of the necessary contracts and the associated compliance procedures.
We are also experienced in helping firms with applications to extend the scope of their permissions (variation of permission), as well as with the processes that need to be gone through when an authorised firm wishes to change its legal status (for example a partnership wishing to convert to LLP status). We can also provide advice and assistance to entities considering purchasing existing FSA authorised firms (see also "Change of Control" below).
As part of the authorisation process, FSA approval will have to be sought for individuals who will be performing "controlled functions". Thereafter the firm must seek prior FSA approval for any person proposed to be appointed to a controlled function. We can advise on the requirements and assist with all parts of the process. We can also provide briefings for individuals on their responsibilities under the FSA's statements of Principle and Code of Practice for Approved Persons.
Under the Financial Services and Markets Act any new controller of an FSA authorised firm (broadly speaking a direct or indirect holder of more than 10% of the shares or voting rights) is required to obtain approval from the FSA before becoming a controller. In addition existing controllers are required to seek permission from the FSA if they increase the level of control that they hold above certain thresholds.
We are able to assist potential controllers in seeking the required approval from the FSA and can advise generally in relation to the implications of becoming a controller.