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Do You Have What It Takes To Succeed With FCA Authorisation Compliance

fca authorisation, compliance consultant, fca authorisation consultantsStartups seeking FCA (Financial Conduct Authority) authorisation may face several compliance and risk challenges and issues.

Here are some of the common compliance hurdles that startups encounter during the FCA authorisation process:

1. Stringent Requirements: Fintech startups, in particular, face stringent requirements when establishing themselves, and the FCA authorisation process is known to be one of the largest hurdles they need to overcome[1].

2. Regulated Activity: Any business carrying out a regulated activity in the UK must be authorized by the FCA, unless they are exempt. This means that startups engaging in regulated financial activities need to go through the authorization process[2].

3. Intense Assessment: FCA applications undergo an intense assessment process. The FCA has expressed its intent to apply a more intensive assessment, which means startups need to provide comprehensive information and meet the FCA’s standards[3].

4. Limited Informal Discussion: Startups have expressed the desire for more opportunities to informally discuss possible issues with the FCA before submitting their formal applications. However, the current process may not provide sufficient avenues for such discussions[4].

5. Crypto Startups: Crypto-related startups in the UK may face additional challenges. Some companies have experienced issues with temporary authorization, which has forced them to explore offshore options. This can create problems for startups that were operating in the UK but were not placed on the temporary authorisation list[5].

To navigate these challenges, startups may seek the assistance of FCA compliance consultants. These consultants can provide guidance and support throughout the authorisation process, helping startups meet the necessary requirements and navigate the complexities of FCA regulations[6].

Citations:
[1] https://integrated.finance/insights/blogs/preparing-your-fintech-startup-for-stringent-fca-authorisation
[2] https://harperjames.co.uk/article/fca-authorisation-explained/
[3] https://www.cosegic.com/resources-library/articles/2021/fca-applications-face-intense-assessment/ and https://complianceconsultant.org/fca-regulatory-authorisations-registrations-licencing-contact/
[4] https://www.fca.org.uk/publication/feedback/project-innovate-feedback-from-roundtables.pdf
[5] https://cointelegraph.com/news/uk-fca-gives-crypto-startups-a-hindering-hand
[6] https://cgregulatorysolutions.com/how-fca-compliance-consultants-can-assist-startups-and-smes-in-london/inherent risk,audit risk assessment documentation,audit risk assessment,compliance risk example

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