PROTECTING THE PERIMETER

Practical points for firms

Firms and individuals who are already regulated by the FSA will not need to reapply to become regulated by the FCA and PRA.You will be automatically transferred to the appropriate regulator at Day One.

The Consultation Paper issued on 12 September set out details of how your firm can disclose its authorisation status.

Gabriel and ONA, our online systems for reporting regulatory data, and applications and notifications respectively, will continue to be used.

Firm reference numbers and individual reference numbers will remain the same.

There will be only one Register for all firms, as there is now. It will be accessed via the FCA and the PRA websites.

Applications made to the FSA but not completed by Day One will not need to be re-submitted.Your application will be transferred to the appropriate regulator automatically.

How to apply

If you are regulated by the FCA and PRA, or are applying for authorisation as a dual-regulated firm, you will not have to make duplicate applications to both regulators. You will get a single decision from either the FCA or PRA that reflects the decision of one or both regulators as appropriate.

• All paper applications for dual-regulated firms should be made to the PRA.

• All paper applications for FCA-only regulated firms should be made to the FCA.

• ONA submissions will be automatically routed to either the FCA or both the FCA and PRA.

Threshold conditions

When firms first apply for authorisation, or want to vary their permissions, they will be assessed against FCA threshold conditions, which will allow us to set the standards all new entrants should meet and give us more power to challenge a firm about its business model and strategy.

We will assess FCA-only regulated firms for conduct and prudential issues. We will assess dual-regulated firms for conduct only, with the PRA assessing prudential issues.

We will work to these principles:

• We will align our assessments of new applications to the risk they pose to our statutory objectives; we will not authorise firms whose products and services pose a risk to customers.

• We will be open with all potential applicants as they go through the authorisations process, making sure we speak with people early on so they understand what is required of them.