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FAQ - FCA Compliance.

We are here to help every step of the way. Below we have compiled some of the most frequently asked questions about FCA compliance.

  • How do I know I need FCA authorisation?
    We often see that some firms develop products and services which -whilst not planned-, inadvertedly require FCA authorisation. For example, firms starting to offer instalment payment on invoices, offering breakdown cover, providing payment services. Irrespective of the circumstances, if in doubt, firms should always seek independent advise from an expert consultant or indeed a respective lawfirm.
  • Are Crypto Firms regulated by the FCA?
    Could be. Whilst cryptoassets are not typically regulated by the FCA (but they can be), the services provided on the back of the cryptoassets can attract the need to be FCA authorised. For example, setting up a fund to invest in various cryptoassets may be viewed as a regulated activity (and product), requiring FCA authorisation. There is a fundamental difference between being regulated by the FCA and being registered with the FCA for moneylaundering purposes (see next question).
  • Are Crypto Firms required to register with the FCA?
    Depending on the activities. The 5MLD has introduced the requirement on certain cryptobusinesses to register with the FCA for money laundering purposes. These firms (as an example) include crypto exhanges, ATM operators and custodian service providers. Naturally, other aspects should be considered as well (such as by way of business test) which RRCA can assist you with.
  • Can I start trading once I submitted the FCA application?
    No. Firm cannot commence any trading until the FCA have given explicit permission, and the firm appears on the FCA register. Conducting regulated activities without the relevant permissions is a criminal offence.
  • What is a controller notification?
    Also known as Change in control. Individuals or companies that wish to acquire, increase or decrease control in a firm that is regualted by the FCA must seek prior approval. Late notification is a criminal offence. If you need any help, just contact our experts.
  • What is SMCR?
    Under the SMCR, "senior managers" are individuals who perform one of the senior management functions designated by the FCA. These replace the 'significant influence functions' under the old regime. Senior Managers will need to be approved by the FCA to carry out their senior management function. SMCR is a somewhat complex regime and firm (as well as individuals) must be fully versed in their personal obligations. If in doubt, such as your Statement or Responsibilities, just give us a quick call.
  • What is a Data Impact Assessment (DPIA)?
    A Data Protection Impact Assessment (DPIA) is a process to help you identify and minimise the data protection risks of a project. You must do a DPIA for processing that is likely to result in a high risk to individuals. This includes some specified types of processing. If in doubt, just give our expert consultants a call.
  • Do I need a Data Protection Officer?
    The UK GDPR introduces a duty for you to appoint a data protection officer (DPO) if you are a public authority or body, or if you carry out certain types of processing activities. If in doubt, just give us a call to discuss your requirement.
  • Do I need FCA permission to have a trading style?
    No. Put simply, you can have any trading style you wish, however you need to declare this with the FCA through your 'Firm Details Attestation', so the trading style (or trading name) appears on the FCA register. Some names are classed 'sesitive' and therefore you would need to seek the FCA's view prior. If in doubt, just give us a call to discuss it further.
  • How long does it take to get FCA authorisation?
    It is driven by the type of application you submit. Typically, the time-frame is 6-12 months but allowance must be given for complex applications, COVID and incomplete submissions.
  • I have UK clients but I am not a UK business. Do I need to be authorised?
    Potentially yes. It is largely driven by the services you provide (eg Investment, payment services, etc) as well as your own operation. Consideration can be given to the principle of 'reversed solicitation', however this is not a blanket approach and therefore legal opinion should be sought. If in doubt, just give us a call to discuss your situation.

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FAQ - About RRCA.

Choosing the right compliance consultant is not only about costs. The right partner can foster and support your growth with their own experience in the field, contacts and most of all, the right level and style of compliance framework.

Below we have compiled the frequent questions asked about RRCA

  • How do I know I need FCA authorisation?
    We often see that some firms develop products and services which -whilst not planned-, inadvertedly require FCA authorisation. For example, firms starting to offer instalment payment on invoices, offering breakdown cover, providing payment services. Irrespective of the circumstances, if in doubt, firms should always seek independent advise from an expert consultant or indeed a respective lawfirm.
  • Are Crypto Firms regulated by the FCA?
    Could be. Whilst cryptoassets are not typically regulated by the FCA (but they can be), the services provided on the back of the cryptoassets can attract the need to be FCA authorised. For example, setting up a fund to invest in various cryptoassets may be viewed as a regulated activity (and product), requiring FCA authorisation. There is a fundamental difference between being regulated by the FCA and being registered with the FCA for moneylaundering purposes (see next question).
  • Are Crypto Firms required to register with the FCA?
    Depending on the activities. The 5MLD has introduced the requirement on certain cryptobusinesses to register with the FCA for money laundering purposes. These firms (as an example) include crypto exhanges, ATM operators and custodian service providers. Naturally, other aspects should be considered as well (such as by way of business test) which RRCA can assist you with.
  • Can I start trading once I submitted the FCA application?
    No. Firm cannot commence any trading until the FCA have given explicit permission, and the firm appears on the FCA register. Conducting regulated activities without the relevant permissions is a criminal offence.
  • What is a controller notification?
    Also known as Change in control. Individuals or companies that wish to acquire, increase or decrease control in a firm that is regualted by the FCA must seek prior approval. Late notification is a criminal offence. If you need any help, just contact our experts.
  • What is SMCR?
    Under the SMCR, "senior managers" are individuals who perform one of the senior management functions designated by the FCA. These replace the 'significant influence functions' under the old regime. Senior Managers will need to be approved by the FCA to carry out their senior management function. SMCR is a somewhat complex regime and firm (as well as individuals) must be fully versed in their personal obligations. If in doubt, such as your Statement or Responsibilities, just give us a quick call.
  • What is a Data Impact Assessment (DPIA)?
    A Data Protection Impact Assessment (DPIA) is a process to help you identify and minimise the data protection risks of a project. You must do a DPIA for processing that is likely to result in a high risk to individuals. This includes some specified types of processing. If in doubt, just give our expert consultants a call.
  • Do I need a Data Protection Officer?
    The UK GDPR introduces a duty for you to appoint a data protection officer (DPO) if you are a public authority or body, or if you carry out certain types of processing activities. If in doubt, just give us a call to discuss your requirement.
  • Do I need FCA permission to have a trading style?
    No. Put simply, you can have any trading style you wish, however you need to declare this with the FCA through your 'Firm Details Attestation', so the trading style (or trading name) appears on the FCA register. Some names are classed 'sesitive' and therefore you would need to seek the FCA's view prior. If in doubt, just give us a call to discuss it further.
  • How long does it take to get FCA authorisation?
    It is driven by the type of application you submit. Typically, the time-frame is 6-12 months but allowance must be given for complex applications, COVID and incomplete submissions.
  • I have UK clients but I am not a UK business. Do I need to be authorised?
    Potentially yes. It is largely driven by the services you provide (eg Investment, payment services, etc) as well as your own operation. Consideration can be given to the principle of 'reversed solicitation', however this is not a blanket approach and therefore legal opinion should be sought. If in doubt, just give us a call to discuss your situation.
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