How to Become Directly Authorised by the FCA: Step-by-Step Guide

Thinking of setting up your own financial advice firm? One of the biggest decisions is whether to become directly authorised by the FCA or operate under an appointed representative network. If you’re leaning towards direct authorisation, here’s a clear, step-by-step guide to help you understand the process, costs, and what to expect.

What Does “Directly Authorised” Mean?

• Your firm is approved by the FCA to provide regulated financial advice

• You’re responsible for compliance, systems, and client outcomes

• More freedom, but also more accountability

Benefits of Direct Authorisation

• Full control over your business and branding

• Choose your own technology and partners

• Keep 100% of your client revenue (no network split)

• Build long-term equity in your firm

  
  

FCA Direct Authorisation Process (Step-by-Step)

1. Decide Your Business Model – single adviser, small firm, or larger practice

2. Prepare Your Application – business plan, financials, compliance procedures

3. Submit via FCA Connect – the online portal

4. Pay Fees – application fees vary depending on permissions required

5. Await Review – FCA typically takes 3–6 months

6. Set Up Your Back Office Systems – CRM, compliance monitoring, client portal

Costs Involved

• FCA application fee (from ~£1,500 upwards depending on scope)

• Ongoing regulatory fees

• Compliance consultancy (optional, but recommended)

• Technology and back-office setup

  
  

Challenges to Consider

• Compliance responsibility is entirely yours

• Regulatory reporting must be accurate and timely

• Initial admin load is high — but technology can ease the burden

Becoming directly authorised by the FCA is a big step, but for many advisers it’s the best way to build a truly independent business. With the right preparation — and the right systems in place — you can make the transition smoother, stay compliant, and focus on serving clients.