Apply to become a consumer investments firm

Consumer investments firms, including financial advisers and investment platforms, have to be authorised by us. Find out how to apply for authorisation.

Types of consumer investments firm

Consumer investments firms include:

financial advisers
wealth management or stockbroking firms
investment platforms
self-invested personal pension (SIPP) operators
crowdfunders

Types of crowdfunding we do and don't regulate

We regulate:

loan-based crowdfunding – also known as peer-to-peer lending, this is where consumers lend money in return for interest payments and a repayment of capital over time
investment-based crowdfunding – where consumers invest directly or indirectly in new or established businesses by buying investments such as shares or debentures

These are regulated activities under the Financial Services and Markets Act 2000.

We don't regulate:

donation-based crowdfunding – where people give money to enterprises or organisations they want to support
pre-payment or rewards-based crowdfunding – where people give money in return for a reward, service or product (eg concert tickets, an innovative product or a computer game)

What to read first

The application process

Our how to apply page explains:

our expectations of all firms
the application process
how to avoid delays with your application

You must read this page in full before submitting your application through our Connect system.

Threshold conditions

Our threshold conditions are our minimum standards for authorised firms.

You'll need to explain how you'll continue to meet each threshold condition.

Perimeter guidance

You'll need to explain how the permissions and investment types in our perimeter guidance match up with your business model, and how you intend to hold and/or safeguard any client money or assets.

Prudential requirements

Depending on your type of business and the permissions you wish to apply for, review the following sourcebook(s) relevant to your firm:

MIFIDPRU – for MiFID investment firms
IPRU-INV – for other types of investment business, eg Article 3 MiFID-exempt firms
MIPRU – if you're applying for mortgage, home finance and/or insurance permissions
CONC – if you're applying for consumer credit permissions

You'll need to explain why you believe you fall into the prudential category you’ve identified.

Our how to apply page explains:

our expectations of all firms
the application process
how to avoid delays with your application

You must read this page in full before submitting your application through our Connect system.

Our threshold conditions are our minimum standards for authorised firms.

You'll need to explain how you'll continue to meet each threshold condition.

You'll need to explain how the permissions and investment types in our perimeter guidance match up with your business model, and how you intend to hold and/or safeguard any client money or assets.

Depending on your type of business and the permissions you wish to apply for, review the following sourcebook(s) relevant to your firm:

MIFIDPRU – for MiFID investment firms
IPRU-INV – for other types of investment business, eg Article 3 MiFID-exempt firms
MIPRU – if you're applying for mortgage, home finance and/or insurance permissions
CONC – if you're applying for consumer credit permissions

You'll need to explain why you believe you fall into the prudential category you’ve identified.

Senior management functions (SMFs)

If you're applying to be approved as an SMF16 or SMF17, make sure you understand our expectations.

We'll assess you based on your training, experience, capacity and third-party support. Consider how your roles and responsibilities align with the risks and controls that apply to your firm’s business model – including, but not limited to, skills gap analysis and statement of responsibilities.

Demonstrating past industry experience won't be sufficient, on its own, to satisfy us that you're competent to undertake Head of Compliance and MLRO responsibilities. Read more about our expectations.

Phoenixing

We have major concerns about the harm, and potential for harm, caused by phoenixing. This includes arrangements where a firm (or anyone closely associated with it) restarts or continues the business elsewhere (or benefits from it being restarted or continued elsewhere), leaving behind unresolved liabilities.

If a firm can’t meet its liabilities and accountable individuals seek to phoenix, we seriously question their fitness and propriety to hold another role that requires our approval.

If you've previously owned or been connected with an authorised firm

Where we identify phoenixing risk, your application (including applications to cancel) will be subject to significant extra scrutiny and challenge.

We may use past business reviews, deed polls and/or special requirements to ensure you meet your past liabilities to consumers. You'll need to justify your actions and explain how you've treated customers fairly.

We'll also look for arrangements that seek to mask accountable individuals benefiting from assets from the original firm (including from the sale or transfer of client banks) through the involvement of connected parties.

Prepare your application

You must submit your application through Connect.

Along with your application form, you'll need to include:

a regulatory business plan and all the required forms
financial forecasts – learn how to prepare your your firm’s financial information
the supporting material you'll rely on to meet the requirements of our Consumer Duty

Regulatory business plan (RBP)

This is an important document that we'll use to assess your firm's activities, so please be comprehensive. We don't expect to see a generic marketing document. If your RBP isn't detailed enough and tailored to your business, your application will take longer.

Refer to our sample business plan for the sections we typically expect to see, and make sure you consider the following areas:

Background	State the aims and objectives of your firm and why you're applying for this type of authorisation. If your firm is part of a wider group, explain where it fits in with the group strategy.
Business to be undertaken	Explain where your firm will fit within the market and how your products and services compare to competitors. This should include the types of business your firm intends to be involved in (including, for example, a customer profile) and how your business will be distributed. We also expect to see complete projected financials that explain how you will maintain your minimum capital requirements.
Governance	Provide an overview of your firm’s governance arrangements, including Board composition and any Board sub-committees.
Staff	Include an organisation chart that shows your key staff and roles, including all controllers and close links, what business they conduct and whether they're regulated. Explain the rationale for the appointment and suitability of members of the governing board, the compliance officer and other approved persons. Describe the background and experience of everyone performing significant, influence-controlled functions such as directors or senior managers.
Outsourcing	Think about what areas of the business are going to be outsourced and how this will be overseen.
Systems and controls / Risk Management	Consider how your firm will identify and manage conduct risks. Provide an overview of your firm’s financial crime controls, anti-money laundering procedures and due diligence processes.
Environmental, social and corporate governance (ESG)	If ESG or sustainability-related advice, products or services will be a material part of your business model, we expect you to include information on your specific ESG competencies, the ESG investment offering, and disclosures and ESG-related governance and oversight.

Required forms – MiFID / MiFID-exempt applications

Please complete all the forms below, which you can access on Connect:

MiFID Authorisation Form
List of Members of the Management Body
MiFID Annex
MiFID Individuals Forms
MIFIDPRU Supplement
MiFID IT Assessment Questionnaire
Fees and Levies Supplement – Retail Firms
Checklist and Declaration Form
Supplement for firms selling:
- investment only
- investment and home finance
- investment and non-investment insurance contracts
- investment, home finance and non-investment insurance contracts

Depending on your firm's structure, you may also need to complete:

MiFID Controllers Forms
Disclosure of Significant Events Appendix

Required forms – non-MiFID applications

Please complete all the forms below, which you can access on Connect:

Core Details
IT Self-Assessment Questionnaire
Checklist and Declaration Form
Supplement for firms selling:
- investment only
- home finance only
- investment and home finance
- investment and non-investment insurance contracts
- investment, home finance and non-investment insurance contracts
- non-investment insurance contracts
- home finance and non-investment insurance contracts

Depending on your firm's structure, you may also need to complete:

Controllers Forms
Individuals Forms
Owners and Influencers Appendix
Sole Traders Appendix

Wealth management and stockbroking firms

Find out how our pre-application support service (PASS) can provide extra support before you apply to us for authorisation.

Using compliance consultants

If a compliance consultant is helping you prepare your application, we still expect you to be familiar with, able to explain and accountable for everything in your application.

Your responses need to be specific to your business, not generic, and we expect to deal with you during the application process, not your consultant.

Application fee

You have to pay a fee to submit your application. The fee will fall into one of our pricing categories and is non-refundable.

Find out more about our authorisation fees, including our pricing categories and how to pay.

Final check and submit

Before you submit everything on Connect, give it one more check to be sure you've included everything.

Our how to apply page has 3 top tips to ensure your application goes smoothly, and explains what happens after you've submitted it.

If you need more help

Please contact us on 0300 500 0597. We're open Monday, Tuesday, Wednesday and Friday 9am to 5pm, and Thursday 9.45am to 5pm.

19/12/2023 : Information added ESG addition to the business plan section

Apply to become a consumer investments firm

On this page

Types of consumer investments firm

What to read first

Senior management functions (SMFs)

Phoenixing

Prepare your application

Wealth management and stockbroking firms

Using compliance consultants

Application fee

Final check and submit

If you need more help

On this page

More on authorisation

Contact us

What we do

How we regulate

How we operate

Who we are

Join us

Firms overview

Regulated firms

Tasks for firms

Primary markets

Markets policy

Regulated markets

Market abuse

Short selling

Transaction reporting

Our Consumer section

Your rights

Complaints

Scams

Report a firm

Sign up to receive daily alerts on the warnings we issue

Media centre

Apply to become a consumer investments firm

On this page

Types of consumer investments firm

What to read first

Senior management functions (SMFs)

Phoenixing

Prepare your application

Wealth management and stockbroking firms

Using compliance consultants

Application fee

Final check and submit

If you need more help

On this page