BANKHALL: DIRECT AUTHORISATION. Supporting your independence

Transcription

1 BANKHALL: DIRECT AUTHORISATION Supporting your independence

2 To help ensure the process is as smooth as possible Bankhall will support you every step of the way 2 BANKHALL

3 WHY CONSIDER DIRECT AUTHORISATION? You could be looking to set up a new financial services business, or you are already established and desiring more autonomy. Whatever your position, it can be a big decision to become directly authorised. To help to ensure the process is as smooth as possible Bankhall will support you every step of the way, discussing your business plans and providing advice on how best to deal with the FCA from the start, to date of authorisation. Our experienced team will aim to ensure you have the best chance of success, offering additional support services both during the authorisation process, and beyond, so you can enjoy freedom of choice over how your business is run in the future. DIRECT AUTHORISATION 3

4 GIVING YOU COMPLETE CONTROL WITH DIRECT AUTHORISATION With Direct Authorisation you will have total autonomy over how your business is run, giving you the freedom to develop and flourish within the parameters of FCA guidelines. Some of the key benefits include: Choice of the products and solutions you want to sell and who you want to sell them to. The freedom to recruit advisers according to your own requirements and monitor their practice in-house without having to seek permission from a network. The freedom to develop your own systems and controls, appropriate to your firm, freeing you from the mandating restrictions imposed by networks. The ability to set your own client file review criteria and standards, and create your own research processes and design suitability reports. Help developing your business model, including the creation of bespoke training and competence schemes to fit your firm s level of expertise. 4 BANKHALL

5 Direct authorisation could save you money When you become Directly Authorised, you will no longer have to worry about being subject to potentially inflated network fees. Now, you will be the only factor influencing your fees and levies so you don t have to worry about covering costs that may not be a true reflection of what you should be paying based on your income and activities. Plus, when you become Directly Authorised you will be able to take control of costs like Professional Indemnity Insurance. This means that the fees you pay will no longer be dependent upon the activities of other firms, so you could potentially see a reduction in your costs. Plus, when you become a Bankhall client after you become Directly Authorised, you will have access to an exclusive rate of up to 25% off leading insurance provider Howden, giving you exceptional cover for excellent value. Finally, obtaining FCA authorisation could increase the overall value of your business in the market place. Whereas appointed representatives can be devalued due to the likely disruptions to their income stream when they are merged or acquired, when you become Directly Authorised you eliminate this potential issue, which could make your business more valuable should you decide to sell or merge. Save your firm money by eliminating network fees and Professional Indemnity Insurance based on your own claims history DIRECT AUTHORISATION 5

6 Once directly authorised, you are responsible for adhering to all your regulatory requirements 6 BANKHALL

7 A FEW THINGS TO BEAR IN MIND Direct Authorisation can be tricky, which is why Bankhall is here to support you through the application process, and beyond with compliance and business support. What to be aware of: Responsibility Once directly authorised, you are responsible for adhering to all your regulatory requirements. Ignore them and you could be subject to fines or other regulatory action. Along with this you must identify and mitigate risks for your firm and customers. Working with Bankhall, we will aim to ensure you receive regular audits and guidance in these areas (subject to your entitlement within your Bankhall contract). When you are independent from a network, any complaints will land directly with you and the firm. Bankhall is on hand to offer advice in the event of such a complaint. You are accountable for the training of any new advisers. At Bankhall, we can help you carry out a number of supervisory activities. This includes Training and Competence support led by Bankhall s compliance consultants, and support on FCA requirements and templates via the Compliance Support Unit telephone line. The twice yearly RMAR report can be time consuming to complete, so you can utilise the compliance guidance from Bankhall to aid completion. You will need to organise your own Professional Indemnity Insurance to ensure you have appropriate cover, before the FCA will authorise your firm. Our relationship with provider Howden means they can offer you a competitive deal, one of the best in the market, and ease the process. DIRECT AUTHORISATION 7

8 Financial considerations Capital adequacy requirements differ between non-investment insurance firms, home finance firms and personal investment firms (PIFs), so we will help you understand your position when applying for Direct Authorisation. For firms providing non-investment insurance and home finance advice, the capital adequacy requirement is the higher of 5,000 or 2.5% of annual income from these activities. This is compared to investment firms, who have a higher requirement of 20,000 or 5% of annual investment income, plus 2.5% of any annual non-investment insurance and home finance income. It is also important to be aware that if your Professional Indemnity Insurance excess is more than 5,000 then your capital adequacy requirement could be greater. In addition, if you have any exclusions on your PII, your capital adequacy requirement could also be greater. 8 BANKHALL

9 The thought of sifting through the documentation required for an FCA application in order to become Directly Authorised was daunting, so without hesitation I sought the assistance of Bankhall. I was instantly comforted that I had both the right support to submit the application and to address any queries coming back from the FCA case handler. Brian O Neill. Director, Torch Financial Planning Ltd. Capital adequacy requirements are different for every firm, whether you re a home finance broker or a personal investment firm DIRECT AUTHORISATION 9

10 HOW BANKHALL WILL HELP YOU SECURE DIRECT AUTHORISATION Initial steps You will be supported from start to finish in your application for Direct Authorisation and we will be on hand after to help you too. This is all with the aim of saving you time and increasing your chance of success. Our first step is to arrange a phone call with you to discuss the initial information we require. This saves you the trouble of having to build your own application pack, as we will guide you through all the forms you need to fill out, utilising our knowledge of the FCA and what they expect. You will also be provided with Financial Information Templates, which we suggest you should complete with the support of an accountant. The list below suggests some of the information we will need to assist you with your application (this is not however exhaustive): What type of firm you are What kind of business you are/will be conducting Who owns your firm If you have any interest in other firms If you have traded before If you will have an Appointed Representative If you are looking to advise clients in any other countries Confirmation that you have the financial information to submit to the FCA as part of your application Once you have provided all the relevant documentation and confirmed that you are happy, we will explain how to upload your application onto the FCA s Connect system. A nonrefundable fee of 1,500 will be payable to the FCA at the time of submission. 10 BANKHALL

11 Switching from a network provide to being directly authorised seemed a very daunting task. However, Bankhall took all the stress and work out of it. I would certainly recommend Bankhall to anyone. Leon Masterman, Masterman & Billingham Financial Services Ltd. Appointment of a case handler The FCA will appoint you a case-handler, who will identify any further information required to progress your application. Bankhall will be copied in on any you receive from the FCA and we can assist you in providing any answers they need. DIRECT AUTHORISATION 11

12 HOW YOU CAN BEST PREPARE FOR DIRECT AUTHORISATION While you are waiting for your FCA application to progress, Bankhall also offers the following additional services to help you become Direct Authorisation-ready. Compliance Implementation Day Bankhall s Field Compliance team will visit your firm to help you set up the systems and controls needed to protect your business. This includes a T&C scheme, complaints procedures, a register for conflicts of interest and an organisational structure chart. Business stationery and disclosure documents review You will be provided with a review of your client-facing stationery, from business cards, to letterheads and disclosure documents. This will aim to ensure they are suitable to issue when you become Directly Authorised. CF10/CF11 Skills Workshop Bankhall provides an introduction to the control function roles of Compliance Oversight and Money Laundering Reporting, designed to equip you with the necessary skills and knowledge to carry out your new responsibilities and implement new strategies in your firm. 12 BANKHALL

13 Introductory Supervisor Skills Workshop If you are a fully qualified adviser and looking to progress into a supervision role, this workshop provides a comprehensive overview of all the skills you will need to develop, in order to confidently supervise and monitor trainee and competent advisers. Access to the Compliance Support Unit Working with Bankhall gives you direct access to our highly experienced team, who are on hand via phone or to assist with a wide range of compliance queries. Bankhall Online and Bulletins So you feel supported, Bankhall Online gives you direct access to a hub of knowledge. This includes industry news and analysis, advisory guides and any new regulatory updates, which are also sent to you via weekly and monthly . Bankhall Online gives you direct access to a hub of knowledge DIRECT AUTHORISATION 13

14 We will become an extension of your business and provide additional services 14 BANKHALL

15 On-going support for you Once you have received Direct Authorisation, Bankhall will still be there to support you in your professional practice. From compliance support, to on-going business development, we will become an extension of your firm, offering a variety of services designed to enhance your business after you become Directly Authorised. Access to on-going regulatory and compliance support. Learning and development support for you and your staff, along with 150 free-to-attend, fully accredited events, taking place throughout the year across the UK. Bankhall will support your learning through our exclusive learning management system, Your Learning Hub, helping you keep track of your learning requirements. The People Department your business can utilise a panel of HR experts there to guide you in people management. Discretionary proposition research support solutions and tools from DISCUS. Access to a range of discounted back office solutions and research software. Bespoke training programmes, tailored to your staff, such as regulatory T&C training from our compliance consultants. Advise your clients with confidence, knowing you have the support of the Bankhall team, helping you to achieve Direct Authorisation and supporting you in future practice. For more information and to talk to us about your specific requirements, call us today on , at business.solutions@bankhall.co.uk or visit us at bankhall.co.uk DIRECT AUTHORISATION 15

16 The whole process of becoming directly authorised has been smooth from our first point of contact with Bankhall to submitting our application. Our application to the FCA is now in its final stages, much quicker than anticipated, thanks to Bankhall. Lisa McRobert, Sarah Grace Mortgage Advisers CAS J8P6 Bankhall is a trading style of Bankhall Support Services Limited a company registered in England and Wales with number which is authorised and regulated by the Financial Conduct Authority under number Registered office: Pixham End, Dorking, Surrey RH4 1QA. VAT number: Bankhall is a registered trademark of Sesame Bankhall Group Limited (a company registered in England and Wales with number ). Registered office: Pixham End, Dorking, Surrey RH4 1QA.