MIFIDPRU Investment Firm Authorisation (Part 4A FSMA) (United Kingdom)

At a glance

What it lets you do

• Reception and transmission of orders
• Execution of orders on behalf of clients
• Dealing on own account
• Portfolio management
• Investment advice

• Reception and transmission of orders. Receiving client orders in financial instruments and passing them to another firm for execution.
• Execution of orders on behalf of clients. Concluding agreements to buy or sell financial instruments on behalf of clients.
• Dealing on own account. Trading financial instruments against proprietary capital, which includes acting as counterparty to client trades.
• Portfolio management. Managing client portfolios that include financial instruments on a discretionary, client-by-client basis.
• Investment advice. Giving personal recommendations to a client about one or more transactions in financial instruments.

Where it is valid

Cost

How long it takes

Statutory: 6 months from receipt of a complete application, or 12 months from receipt of an incomplete application under Section 55V of FSMA 2000². Observed: Median elapsed determination time of 138 calendar days (Lower Quartile: 105 days, Upper Quartile: 183 days) across 310 Part 4A solo-regulated New Firm Authorisations determined in Q4 2025/26⁵. The statutory clock usually starts only when the regulator treats the application as complete, and pauses while it waits for answers to its questions.

Buying a company that already holds it

Prior approval required. Acquirers must obtain FCA approval prior to acquiring or increasing control in an FCA or PRA authorized firm; acquiring control without approval constitutes a criminal offence under FSMA 2000 Section 191F. For Directive firms (including banks, MiFID investment firms, UCITS Mancos, payment institutions, and electronic money institutions), control thresholds are 10%, 20%, 30%, and 50% of shares or voting rights, or becoming a parent undertaking. For non-Directive firms (such as non-MiFID investment firms, general insurance intermediaries, and full-scope AIFMs), a single 20% or more threshold applies. For cryptoasset firms under MLRs Schedule 6B (amended 30 June 2026), a 25% beneficial owner threshold applies, alongside FSMA bands if no beneficial owner exists. The statutory assessment period is 60 business days from complete notification acknowledgment (FSMA Section 189), pausable once for up to 30 business days if further information is requested.⁶

Ready-made companies holding this licence: see verified positions.

Laws behind it

• Financial Services and Markets Act 2000: 2000 c. 8