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Preparing Financial Information for FCA Authorisation: Avoiding Delays and Getting It Right

  • Writer: Andrew Arginovski
    Andrew Arginovski
  • Oct 2
  • 3 min read
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When applying for FCA authorisation or registration, one of the most common stumbling blocks firms face is their financial information. Despite clear guidance, many applications are delayed because the information submitted does not meet the FCA’s minimum standards.


On 1 October 2025, the FCA refreshed its guidance on what financial information must be included with an application. The message is simple: firms must be ready, willing and organised, and high-quality financials are a key part of demonstrating that.


At Compliance Angle, we regularly see applications slowed down because firms either underprepare their financial data or fail to align it with their business model. Below, we combine the FCA’s expectations with our own insights into what firms should do to get this right.


Strategy Comes Before Spreadsheets


The FCA’s updated guidance stresses that financial information must be customised to your business, not simply lifted from templates or generic forecasts. At a minimum, firms should prepare:


  • Three sets of accounts: income statement, balance sheet, and cash flow.

  • Historical financial statements: ideally three years, if already incorporated.

  • Forward-looking projections: at least three years, best practice in Excel, both monthly and yearly.

  • Notes and key assumptions: to help the FCA understand the numbers, such as management information or board packs.


Our take: The firms that succeed are those that build financials around a credible business plan. If your strategy, prudential requirements, and governance model are not resolved upfront, your forecasts will look unrealistic and invite scrutiny.


Be Organised: Align with Your Legal Entity


The FCA is clear: financial information must align fully with the legal entity seeking authorisation. Submitting figures that only represent part of the business will not be accepted.


The FCA also now requires firms to use its Financial Data Template, which collects baseline information in a structured way. The template includes a glossary to help complete it properly and must be submitted as an Excel file.


Our take: Too often, firms prepare numbers at a group level or in a way that doesn’t match the regulated entity. This creates confusion and delays. Double-check alignment with your entity structure before submission.


Prudential Requirements Must Be Evidenced


For firms subject to a quantified prudential regime, the FCA expects details such as share capital, term sheets for capital instruments, and evidence that these meet prudential requirements.


Our take: Don’t just state that you meet capital requirements - evidence it. Submitting incomplete prudential information is one of the fastest ways to stall an application.


Avoid Common Errors in Forecasts


The FCA has flagged recurring mistakes in forward-looking statements, such as:


  • Balance sheets that don’t balance.

  • Opening and closing accounts that don’t match across years.

  • Cash flows disconnected from income and expense assumptions.


Our take: Treat your forecasts as you would a regulatory return, they must reconcile. Build in time for an independent review of your spreadsheets before submission.


Why This Matters


The FCA needs to see that applicants have sufficient financial resources to manage risk. This includes:


  • Having enough assets to cover debts and liabilities.

  • Demonstrating profitability, capital adequacy, and liquidity.

  • Showing resources are proportionate to the scale and risk of the business.


Lack of financial resilience is a leading cause of firm failure, and consumer harm. By providing complete, accurate financial information upfront, firms help the FCA process applications faster and avoid unnecessary follow-up queries.


Common Pitfalls to Avoid


From both the FCA’s observations and our own experience, the most frequent issues are:


  • Generic, untailored forecasts not linked to the business plan.

  • Misaligned information that doesn’t match the applying legal entity.

  • Missing prudential evidence for capital requirements.

  • Errors in balance sheets, reconciliations, and cash flow statements.

  • Failing to explain assumptions behind projections.


By contrast, successful firms provide coherent, reconciled financials with clear notes and realistic assumptions.


Final Thoughts


The FCA’s October 2025 update is a reminder that financial information is not a box-ticking exercise. It is a fundamental test of whether a firm is genuinely prepared to operate in the UK financial services market.


At Compliance Angle, we help firms prepare robust financial information that stands up to FCA scrutiny. From reviewing forecasts and prudential calculations to aligning financial data with business models, we ensure applications are not delayed by avoidable mistakes.


Contact us today for a free consultation.📞 +44 7427792594📧 info@complianceangle.co.uk

 
 
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