Threshold conditions—FCA authorised and regulated firms
Produced in partnership with John Ahern of Jones Day
Threshold conditions—FCA authorised and regulated firms

The following Financial Services guidance note Produced in partnership with John Ahern of Jones Day provides comprehensive and up to date legal information covering:

  • Threshold conditions—FCA authorised and regulated firms
  • The FCA threshold conditions
  • When do the FCA threshold conditions apply?
  • Failure to satisfy the threshold conditions
  • Condition 1—location of offices
  • Condition 2—effective supervision
  • Condition 3—appropriate resources
  • Condition 4—suitability
  • Condition 5—business model
  • Threshold conditions—incoming EEA firm or Treaty firm
  • more

All Financial Conduct Authority (FCA) authorised firms are required to maintain a set of minimum standards in order to become and remain authorised. These standards are referred to as the 'threshold conditions'. The threshold conditions are set out at Schedule 6 to the Financial Services and Markets Act 2000 (FSMA 2000). This was amended by the Financial Services and Markets Act 2000 (Threshold Conditions) Order 2013, SI 2013/555. The FCA expects firms and those seeking authorisation to satisfy these conditions both on being granted authorisation for the first time and on a continuing basis afterwards.

Changes made to the Financial Services and Markets Act 2000 (FSMA 2000) by the Financial Services Act 2012 (FSA 2012) came into place on 1 April 2013. FSMA 2000, s 55C, as inserted by FSA 2012, s 11(2), provides that HM Treasury may by order amend FSMA 2000, Sch 6, Pts 1 and 2 by altering, adding or repealing provisions, or by substituting for those Parts as they have effect for the time being, according to the provisions specified in the order. This is the Financial Services and Markets Act 2000 (Threshold Conditions) Order 2013, SI 2013/555.

Pursuant to FSMA 2000, s 137O (as inserted by FSA 2012, s 24), the FCA may make rules supplementing any of the conditions for the time being set