Example FCA Regulatory Business Plan

This short article provides example FCA regulatory business plan criteria and headings. If you are going through an FCA authorisation application, you will need to submit your completed regulatory business plan during the application submission. The plan’s aim is to provide the regulator with information about the regulated activities you intend to carry on, evidence resources and show you have identifed risks and controls.

How Does the FCA Use the Regulatory Business Plan?

The guidance notes for the FCA authorisation application ask that you attach your regulatory business plan at the time of application submission. The FCA will use the information proivded by you to ensure you are applying and authorised for the correct regulated activities. They will also be looking at the adequacy of the resources you have in place and to make sure  you have identified and considered all possible business and regulatory risks.

The business plan must suit your business size, scope and intended activities. Larger or more complex firms will have a more detailed plan to account for higher risk factors. The information provided should be proportionate to the nature of the business. It is important that the submitted FCA regulatory business plan is complete and provides all requested and relevant information.

You can visit the below sections of FCA Handbook for further details of the FCA expectations and guidance.

• https://www.handbook.fca.org.uk/handbook/SYSC/3/2.html
• https://www.handbook.fca.org.uk/handbook/COND/2/4.html

Sections in Your FCA Business Plan

The FCA provide a wealth of guidance on their website about what you will need to include in your regulatory business plan prior to submission. If you are looking to purchase a quick and easy to use template for the plan with the format, layout and sections akready in place for you, view our Regulatory Business Plan Template set.

So, what are the main sections and criteria the FCA require from your plan? Remember, the aim is to provide a wealth of information about your business, the regulated activities you intend to carry on and what resources and controls you do or will have in place to manage and maintain compliance.

• Provide a summary of your firm’s strategy and background.
• Provide details of the ownership and control structure of the business.
• Provide details of capital resources and relevant financial details.

You can use the FCA’s template for providing the relevant financial data.

Providing Financial Information

Summarise sources of income, projected 3-year outlook or if already trading, last 3-years accounts plus the latest P&L figures and current cash flow. Add information about the firms financial status and provisions for client money (if applicable).

Detail any assets and provide information on how the firm will hold sufficient capital to meet the relevant capital resource requirement.

Company Details and Structure

Provide information about the firm’s legal status, trading/registered address, length of time trading (if aleady established) and the company website and contact details. In this section of the regulatory business plan, you will also want to provide information about the organisational and controls structures. Provide full details for any directors, owners or partners.

You should also note details of all other relevant key personnel.These can include relevant stakeholders and senior management. It is also a good idea to reference any person who will hold or perform a Senior Management Function (SMF) and who has compliance oversight. Give information about the background, experience, qualifications and employment of key personnel. Aim to demonstrate why they are suitable for the role and activities the company is applying for.

Business Model

Provide details of the firm’s objectives, the activities you intend to carry on and what products and services you aim to provide. Explain what the business will do, how it does it and what areas you will specialise in. It is a good idea to explain why you require authorisation and the associated regulated activities to demonstrate to the FCA that you understand the compliance.

If already trading, provide information on the existing customer base and how any new/revised regulated activities might affect them.

Customer Journey

Describe the customers full journey from start to finish. You are aiming to provide the FCA with a clear picture of: –

• where your clients come from
• how they are marketing to/obtained
• what services/products are offered
• the sales/service process
• after-sales care and ongoing relationships.