Applying for an authorisation

Scope

This page is applicable to all firms seeking an authorisation under any one or more of the following Acts (the "Supervisory Acts");

It should be noted that the process described below does not apply to Fund applications under CISA or the Financial Services (Occupational Pensions Institutions) Act 2006.  The application process for these can be found here for Funds and here for Occupational Pension Schemes.

Meeting with the FSC prior to submission of an application

The applicant and/or professional advisers are welcome to meet with the FSC prior to an application in order to discuss points of principle and/or clarification.  In order to ensure the effectiveness of the meeting and that the right people are present, the FSC encourages a written submission to be provided to the relevant division 48 hours prior to the meeting.

Applicants and their advisers are requested to avoid seeking multiple meetings or meetings where the matters to be covered are best dealt with by correspondence or phone.

Universal Application Process

The FSC has introduced a streamlined application process for all types of applications for authorisations under any one or more of the Supervisory Acts including the use of universal application forms.

The Application Forms may be downloaded from here and are available to be completed as Microsoft Word documents.

The table below summarises the forms and documents that must accompany any application for authorisation;

  ICA

BA, CISA, FSA & MIFI
Application Form FORM1 OR FORM5 Universal Application Form
Individual Questionnaire for every director, manager, officer or controller NOTDOC1 to NOTDOC4 Individual Questionnaire
CV for every director, manager, officer or controller N N
References for every director, manager, officer or controller N N
Corporate Questionnaire for every director, manager, officer or controller NOTDOC5 to NOTDOC8 Body Corporate Questionnaire
Details of trust structure holding shares in applicant
(see below)		 Y Y
(except banks where not permitted)
Shareholder Organogram Y Y
Business Plan Y Y
Financial Projections 3 Years 3 Years
Statutory Returns 3 Years 3 Years
(1st year in quarters and annually thereafter)
Mem and Articles of Association of the Applicant N N
Certificate of Incorporation Y Y
Management Agreements Y Y
Outsourcing Agreements Y Y
Confirmation of share allotment and payment of shares Y Y
Details of PI Cover N/A Y
Details of Source of Funds
(see below)		 Y Y
Customer agreements, policy wordings, mandates, etc. Y Y
Authorisation Profile N Y

Applicants must complete and submit the Material Document Checklist that forms part of the application process so as to ensure that they have submitted all the major documents from the onset.  This will ensure that the application processing is not delayed due to key information being missing from the application pack.

The documents to accompany a complete application are also summarised in the following diagram.  It should be noted that on review of the submitted documentations, the FSC may ask for additional supporting documentation or additional information. All documents in a foreign language must be accompanied by an English translation.

Summary of application documents (see table above)

Fit & Proper Test

All application submissions will also require that all persons to be appointed to key positions satisfy the FSC's Fit & Proper Test (see page - will open in new window). 

Four Eyes

Additionally, all applications will also need to satisfy the FSC regarding the Four-Eyes Principle (see page - will open in new window)

Business Plan Submission

Where the following information has not already been supplied in the Application Form, the business plan should clearly and comprehensively set out;

The Commission will be seeking evidence that the firm has considered the risk, compliance and operational issues associated with the proposed activity, as well as evidence that it has documented these, together with the procedures, processes, policies, systems and controls to be put in place. Details of these should be comprehensively set out in the business plan.

Regulatory Returns Submission

As part of the application process, firms must also supply 3 years worth of statutory returns supporting the business plan and financial projections.  These need be on a quarterly basis for the first year and then annual returns for the following two years.

The statutory returns can be downloaded from the following pages;

Note 1: Please contact the Division in question to ensure you have downloaded and are completing the correct set of Statutory Returns.

Note 2: All applicants should ensure that a sufficient buffer is built into the figures, over and above the minimum financial resources and capital requirements, to cover at least the projected expenditure of the first 4 months of operations.

Authorisation does not imply approval

It should be noted that because an authorisation has been granted that this does not imply approval of any of the underlying documents, processes or controls that were submitted or described as part of the application process.  Compliance with statutory or regulatory requirements continues to lie with the firm and its senior management.  The FSC retains the right to take action against any non-compliant document, process or control.

We will write to all applicants when an application has been determined.  The decision may require the applicant to meet specified conditions before an authorisation is issued.

The advice or interpretation given in this web-page represents the views of the FSC as to its expectations of how the requirements of the relevant legislation in question is to be complied with and/or how it falls to be applied. This, however, is not intended as a definitive interpretation of the applicable legislation which is ultimately a matter for the courts to determine. You are, therefore, strongly advised to seek appropriate legal advice before any action or decision is taken (if you have not already done so). The FSC does not provide, or purport to offer, legal advice

Application Forms

Note : The application forms for an application under the ICA needs to be made using the forms referred to under Section3 and Schedule 1 of the Insurance Companies (Prescribed Particulars) Regulations 1996.

Please click on the relevant form to download (will open in a separate window);

Word Icon Material Document Checklist  
Word Icon Universal Application Form  
Word Icon Authorisation Profile  
Word Icon Individual Questionnaire  
Word Icon Body Corporate Questionnaire  
Word Icon Trust Questionnaire  

Application Fees

All applications must be accompanied by the prescribed application fees.  See here for a complete list of fees applicable (will open in a new window).

Additional Documentation Required when shareholdings is through a trust structure

Where a trust is proposed as part of the shareholding structure of an applicant of regulated firm, the Commission will need sight of a comprehensive explanation setting out the rationale for the use of such a vehicle within the structure.

If the Commission deems the rationale given acceptable (and there are no issues arising out of the content of the draft trust deed), and has no objections to the use of a trust, the following will be required –

  1.  Sight of the trust deed involved.
  2.  A written undertaking from the respective trustees to the effect that:
    • the provisions of the trust(s) in respect of beneficiaries, trustee(s) and terms of settlement are as contained in the relevant deed(s) dated [xxx],
    • the resignation of any trustee and, where appropriate, protector will be notified to the Commission forthwith,
    • no other trustee(s) or any additional or different protector(s) will be appointed, without the prior approval in writing of the Commission,
    • any proposed changes to the beneficiaries must be notified in writing to the Commission,
    • any proposed distribution or transfer for value or otherwise of any of the trust assets related to the applicant firm must receive the prior approval in writing of the Commission.
  3. The trustee(s) will also need to confirm that they understand that failure to adhere to their undertaking may result in regulatory action against the applicant/regulated firm.

In addition to the Trust Questionnaire, copy of trust deed and trustee declaration, the Commission will also require Individual Questionnaires for the settlor(s) and any named beneficiaries.  This will not apply in cases where the beneficiary is a minor.  In these cases, details of the individual will suffice i.e. name, DOB, address, nationality & passport number.  

When the trust is for example a discretionary family trust where not all beneficiaries are named (i.e. refers to spouse and children/issue of Mr X but does not actually name these individuals) a copy of the ‘letter of wishes’ of the Settlor, if any, will also be required.  

Source of Funds of applicants

The FSC seeks, as a matter of routine, information on the source of funds of applicant firms or individuals to ensure that regulated firms are not being funded from the proceeds of criminal activities or being misused by organised crime syndicates.  In most cases the FSC will rely on professional or other intermediaries to conduct these Due Diligence checks as part of the application process. 

What is required?

Irrespective of the requirements imposed on the professional firm or intermediary under the Crime (Money Laundering & Proceeds) Act, or other legislative or regulatory requirements dealing with countering money laundering or terrorist financing, the FSC will need to be satisfied that appropriate verification of an applicant firm or individual has been conducted.

In order to ensure that the applicant firm or individual has satisfied the FSC requirements, the following minimum processes should be followed for any person (legal or natural) who is supplying any form of financing to the applicant firm which represents 10% or more of the capitalisation of the firm;

What needs to be supplied to the FSC?

The FSC will expect the above information to accompany all applications where the persons are not already known to it, or where this information, previously supplied, is more than five years out of date.

Previously supplied information

The FSC may, as part of its risk assessment work, be verifying that statements made by professionals or intermediaries regarding source of funds of applicant firms or individuals are adequately supported by documentary evidence.  Where this is found not to be the case, the FSC will no longer rely on the work conducted by such persons and will carry out this due diligence itself.

As a consequence of resourcing issues, it is anticipated that where the FSC is obliged to take on this work, there will be considerable delays to the application processing.

Service Level Standards

The FSC undertakes to process applications for authorisations in timeframes that are well below the statutory requirements.  Below are the FSC's service level standards and statutory timeframes for this.

It should be noted, however, that these timeframes can only be met when the application is complete and it is therefore up to the applicant to ensure that a full submission of an application and accompanying documents has been made.

Supervisory Act Type Statutory Time-frame Service Level Standard
BA, FSA, ICA, MiFi Application for a licence 6 months 18 weeks
CISA Application for a licence 12 Months 18 weeks