FCA – Approach to Authorisation & Supervision of International Firms

Thu Feb 4 2021

Dear Member,

The FCA published it’s Approach to the authorisation and supervision of international firms yesterday.

The document explains how the FCA will assess international firms when they apply for authorisation to operate in the UK market. The FCA has considered responses to a consultation published last year (CP20/20). As previously advised, Brokers Ireland made a submission advocating that a physical presence in the UK should not be a prerequisite for authorisation.   A summary of responses received is available here.

The FCA has confirmed in its publication that it expects firms seeking authorisation to have an active place of business in the UK to enable them to effectively supervise its UK activities.

They indicated that it is their view that 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. In the approach document the FCA sets out how these risks may be mitigated, and the factors that will be taken 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.

Further details in relation to the FCAs approach is available here.

For further enquiries, please email compliance@brokersireland.ie

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