When speaking with prospective clients, and at various industry fora, there is often reference made to applications to the Financial Conduct Authority (FCA) for authorisation and, importantly, “how long will it take?”. In practice, as any experienced regulatory consultant will explain, the pre-application timeline depends heavily on the firm and its advisers working together effectively to prepare the application and supporting documentation in the manner, and to the standard, the FCA expects before submission.
Once the application is submitted, however, the timeline is no less uncertain, despite what the legislation might suggest.
Under Part 4A of the Financial Services and Markets Act 2000 (FSMA), and the corresponding regimes under the Payment Services Regulations 2017 (PSRs) and the Electronic Money Regulations 2011 (EMRs), the concept of a “complete” application plays a decisive role in determining which statutory clock applies. While the legislation draws a binary distinction between complete and incomplete applications, the regulator’s assessment in practice is more nuanced, incorporating both quantitative and qualitative considerations and, inevitably, an element of supervisory judgement that directly impacts timing.
The Statutory Framework and Determination Periods
Section 55V of FSMA requires the FCA to determine an application for Part 4A permission within:
- 6 months of receiving a complete application; or
- 12 months of receiving the application, if it is incomplete.
Under Regulation 12 of the PSRs and Regulation 6 of the EMRs, the FCA must determine an application within:
- 3 months of receiving a complete application; or
- 12 months of receiving the application if it is incomplete.
In each case, the statutory long-stop period begins on receipt of the application. The shorter 3- or 6-month period applies only once the FCA considers the application to be complete.
Neither FSMA nor the PSRs/EMRs prescribe a checklist for completeness. Instead, the legislation confers on the FCA broad powers to direct the manner in which an application must be made, the information it must contain and to require further information, verification or explanation where necessary. In practice, this means that completeness is not assessed against a fixed or purely objective standard, but through the application of regulatory judgement to the facts and materials presented.
While this discretion is constrained by public law principles, including reasonableness and proportionality, the assessment of whether the FCA has sufficient information to determine an application is ultimately a matter for the regulator, exercised through its case officers.
The Quantitative Component: Coverage and Submission
The quantitative component of completeness concerns whether the application contains all required elements in the form directed by the FCA. The FCA’s application forms, submitted via the Connect system, are designed to capture the information the regulator considers necessary to determine an application, including mandatory questions, prescribed attachments and supporting documentation.
In practice, the FCA also engages with firms informally (for example through pre-application meetings, industry roundtables and trade associations). However, this is a matter of supervisory practice rather than statutory obligation.
It is also important to recognise that application forms may not always fully reflect evolving supervisory expectations. The FCA frequently publishes additional guidance on its website setting out further information it expects firms to provide. In our experience, compliance with such guidance forms part of the FCA’s assessment of completeness.
Where required information has not been provided, documents are missing or sections of the application are materially incomplete, the application is unlikely to meet even the baseline quantitative threshold. In such circumstances, the FCA may treat the application as invalid.
At this stage, completeness is largely a matter of coverage and compliance with the FCA’s formal directions as to how an application must be made.
The Qualitative Component: Substance, Usability and Judgement
Meeting the quantitative threshold does not, however, guarantee completeness. The qualitative component focuses on whether the information provided is capable of supporting proper assessment and determination.
In assessing this, the FCA will consider whether the application is coherent, internally consistent, and sufficiently developed to allow meaningful assessment against the Threshold Conditions (under Schedule 6 FSMA) or the equivalent requirements under the PSRs and EMRs.
Responses that are overly high-level, aspirational or dependent on unresolved future steps often fail to meet this standard, even where all questions have technically been answered.
This assessment necessarily involves case officer judgement. Different business models, risk profiles and supervisory experience will shape what a particular case officer considers sufficient to support a determination. While the FCA seeks internal consistency through guidance and escalation processes, there is no single objective point at which qualitative completeness is deemed to have been achieved.
As a result, two applications that are similar in structure may be treated differently depending on their factual complexity and the degree of assurance the FCA considers necessary in each case.
The Application Forms as a Dual Benchmark
FCA application forms therefore operate as a dual benchmark.
Quantitatively, they define the categories and content of information the FCA expects to receive. Qualitatively, the framing of the questions, and the level of detail implicitly demanded, signal the depth of analysis the FCA considers necessary to assess the application properly and reach a decision.
In practice, the FCA will judge completeness not only by whether the form has been completed in the prescribed manner, but whether the information provided gives the assigned case officer sufficient confidence to proceed to full assessment and determination.
FSMA further provides that:
“At any time after the application is received and before it is determined, the appropriate regulator may require the applicant to provide it with such further information as it reasonably considers necessary to enable it to determine the application…”
This broad statutory power reinforces the FCA’s ability to request additional material even after an application has been treated as complete.
Completeness, Subjectivity and the Statutory Clock
The 3- or 6-month determination period applies only once the FCA considers the application complete. Where either the quantitative or qualitative component is lacking, the application will fall within the 12-month long-stop period.
Early and repeated information requests are often a practical indication that the qualitative threshold has not yet been met, even where the application appears complete at first glance. In many cases, these requests reflect not the absence of information per se, but the FCA’s view that the information provided does not yet permit a sufficiently robust assessment.
However, completeness does not mean that the FCA must already have everything required to reach a final decision without further engagement. If that were the case, the statutory 3- or 6-month determination period would serve little purpose. Rather, completeness signifies that the FCA has received sufficient information to begin formal assessment within the shorter statutory timeframe.
What Happens if the Statutory Period is Exceeded?
Importantly, the expiry of the 3-, 6- or 12-month statutory period does not result in deemed approval or automatic grant of permission. FSMA, the PSRs and the EMRs deliberately avoid such an outcome.
Where the FCA fails to determine an application within the applicable statutory period, the applicant’s remedy is procedural rather than substantive. The firm may refer the matter to the Upper Tribunal, which can consider whether the FCA has failed to comply with its statutory obligations and, if appropriate, direct the FCA to reach a decision (though not necessarily to grant approval).
In practice, such referrals are rare. The FCA will typically manage applications to avoid breaching statutory deadlines, often through continued dialogue around completeness or further information requirements. In some cases, applicants may be invited to withdraw an application rather than proceed to a formal refusal.
The inherent subjectivity in assessing qualitative completeness affords the FCA a degree of flexibility, albeit one constrained by the possibility of Tribunal scrutiny.
For firms, reliance on the shorter statutory deadline is rarely a prudent strategy. Extended determination periods can create commercial uncertainty, delay mobilisation and raise supervisory concerns about authorisation readiness.
Read Across to Variations of Permission
These principles apply equally to applications for a Variation of Permission (VoP). Although VoPs are sometimes perceived as less intensive, they remain gateway decisions requiring the FCA to be satisfied that the Threshold Conditions will continue to be met as varied.
A VoP application that is quantitatively complete but qualitatively underdeveloped is unlikely to progress efficiently. Where the FCA cannot properly assess the impact of the proposed variation on the firm’s business model, governance or resources, the statutory clock becomes secondary to the regulator’s judgement as to what further information is required.
Read Across to Change in Control Notifications
A similar dynamic arises in the change in control regime under Part XII FSMA. While the statutory assessment periods differ (including the FCA’s power to “stop the clock” when requesting further information), the underlying principle is the same: the assessment period is predicated on the FCA having received the information it considers necessary to assess the proposed controller(s) and the impact on the authorised firm.
Notifications that technically satisfy the form requirements but fail to present a clear and credible picture of ownership, funding, influence or strategy frequently generate further information requests, extending the effective assessment timeline.
Completeness as a Timing Discipline
From a practical perspective, completeness is best viewed as a timing discipline rather than a rigid statutory entitlement. In the absence of prescriptive definitions and given the overlay of regulatory judgement, the application process will take as long as is necessary for the FCA to be satisfied.
According to the latest service standard metrics published by the FCA, the median determination time for payments applications is bang on 6 months. I would suggest that this is a good yardstick for all applications, accepting that the figure will inevitably vary across different sectors, where different risks and complexities of different business types necessitate different levels of scrutiny. One size does not fit all.
Interestingly though, these service standard metrics for authorisation applications are set against the long-stop 12-month statutory deadline. There is no separate metric dealing with completeness. As such and given all we have said already in this article, the reality is that it will take as long as it takes. The good news though, is that the FCA has committed to speed up the authorisation process by proposing reduced the timelines for FSMA Part4A applications from 6 to 4 months (complete) and 12 to 10 months (incomplete) and reducing the long stop for payments firms from 12 to 10 months. Still, after all that, without that definition of ‘completeness’ nor a metrics to measure its application, does it really matter if you believe your application to be ‘complete’? Better to manage your expectations based on the FCA’s average determination times, rather than the nebulous concept of a ‘complete’ application.
How Complyport Can Help
Complyport has over 25 years’ experience supporting firms with FCA authorisations, variations of permission, change in control notifications and payments and e-money applications. We understand both the quantitative and qualitative dimensions of completeness and how they influence regulatory timelines.
Our experienced regulatory consultants can assist with:
- Conducting a readiness assessment against the Threshold Conditions and applicable regulatory requirements;
- Structuring and drafting robust, regulator-ready FCA applications;
- Managing pre-application engagement with the FCA;
- Supporting responses to information requests during the assessment phase; and
- Providing ongoing compliance and risk management support post-authorisation.
If you are considering applying for FCA authorisation or submitting a variation of permission, early preparation is critical.
Book a meeting with a Subject Matter Expert today to discuss your authorisation strategy and regulatory obligations.
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