Wholesale markets firm applicants

If you're a wholesale markets firm, you have to be authorised by us. Learn how to prepare your application and what you need to read first.

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.

The page for your type of firm

Refer to the page below that's relevant to your business model. This has additional information on what to include in your application, and the permissions you may need:

Our letters for your sector

Review and consider the contents of the supervisory correspondence we've published that's relevant to your sector.

In your application, you should explain how you've addressed any areas identified in these portfolio letters that are relevant to your proposed business.

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.

Please note, our threshold conditions don't apply to small registered AIFMs.

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 standards

Find out about the:

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.

Refer to the page below that's relevant to your business model. This has additional information on what to include in your application, and the permissions you may need:

investment managers
authorised AIFMs (ie full-scope AIFMs, small authorised AIFMs)
registered AIFMs (ie small registered AIFMs, including SEF and RVECA managers)
wholesale brokers
principal trading firms (PTFs)
multilateral trading facilities (MTFs) and organised trading facilities (OTFs)
corporate finance firms
custodians

Review and consider the contents of the supervisory correspondence we've published that's relevant to your sector.

In your application, you should explain how you've addressed any areas identified in these portfolio letters that are relevant to your proposed business.

Our threshold conditions are our minimum standards for authorised firms.

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

Please note, our threshold conditions don't apply to small registered AIFMs.

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.

Find out about the:

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

Bear in mind that our guidance doesn't cover every business model or scenario, and there may be additional factors that your firm needs to consider.

MiFID / MiFID-exempt applications

For new firm authorisations, refer to the

Or if you're applying to vary a permission, see our MiFID variation of permission notes.

Prepare your application

You must submit your application through Connect.

Make sure you include:

your regulatory business plan (see below)
a financial forecast for 3 years with monthly profit and loss statement, balance sheet, cash flow and capital analysis – learn how to prepare your firm's financial information
all the required forms and supporting material listed on the relevant page for your type of firm
a UK-designated principal place of business, with explanation of how and where your activity will be carried on in the UK
a bank account for your firm
client money accounts, if you propose to hold client money or assets
any additional documentation we may ask for as part of our assessment of your application

Regulatory business plan

This is an important regulatory document that we'll use to assess your firm's activities, so be comprehensive. We don't expect you to send us a generic marketing document – your application will take longer if the business plan isn't detailed enough.

Make sure you include the following sections:

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 are 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.

Criteria for extra support

Check if your firm meets the criteria for our pre-application support service (PASS) which offers pre-application meetings and FCA speakers at industry events.

This is aimed at:

overseas firms seeking to do business in the UK
firms planning to set up business in the devolved nations or outside the South East
firms with innovative business models or involved in high-risk activities
wholesale service providers

Find out more about PASS

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.

Page updates

08/11/2023 : Editorial amendment Amended a typo

18/10/2023 : Link added Custodians page

Wholesale markets firm applicants

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What to read first

MiFID / MiFID-exempt applications

Prepare your application

Criteria for extra support

Final check and submit

If you need more help

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