The network model (Appointed Representative) is increasingly restrictive and expensive. For mature practices generating over £400k in recurring revenue, direct authorisation (DA) offers superior margin control and enterprise value. Here is the unvarnished timeline and cost structure.
The FCA currently states a 6-month statutory deadline for complete applications. In reality, expect 8 to 12 months from the moment you decide to leave your network to the day you receive your Part 4A permissions.
Drafting the Regulatory Business Plan. Formulating the ICARA (Internal Capital Adequacy and Risk Assessment). Securing provisional terms for Professional Indemnity (PI) insurance. This cannot be rushed; a poor business plan guarantees rejection.
Submitting the application via Connect. Paying the £1,500 to £5,000 application fee. Waiting for a case officer to be assigned (this alone can take 6-10 weeks).
The case officer will scrutinize your CIP, your Consumer Duty implementation plan, and your financial projections. Expect multiple rounds of detailed, technical questions regarding your oversight of Appointed Representatives (if any) and your charging structure.
Under the MIFIDPRU regime, most advice firms fall under the SNI (Small and Non-Interconnected) classification. You must hold liquid capital equal to the higher of:
You cannot use illiquid assets (like office buildings) to meet this requirement. It must be cash in the bank.
Don't guess your capital requirement. Use our ICARA estimator to see exactly how much cash you need to hold.
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