Your guide to becoming
directly authorised
There are many benefits of becoming directly authorised as well as a great deal of myths surrounding the process of becoming directly authorised – which can put advisers off. Compliance First will guide you step by step throughout your FSA’s authorisation process, we’ve outlined below what you should expect from the process.
Completing your FSA Application
Compliance First will assign you a dedicated case officer who you can contact at anytime.
- Your case officer will assist you with completing your application to the highest standard. Compliance First have processed over 1500 applications and can identify potential problems at the outset.
- If the FSA come back with further queries Compliance First will advise you on gathering the additional information you require.
What kind of charges can I expect? Initially there is a £1,500 FSA application fee. Annually, there are permissions of between £850 and £1000 for each adviser. There are also various payments to the FOS, ranging from £50-£80.
FSA transitional fees are taken pro rata, with the first bill received within three months of authorisation. AIFA members get the option to pay fees monthly.
What type of company structure should I select? There is much to consider when selecting the most suitable company structure for you. Compliance First will provide you with all the advice and guidance you need to ensure you make the most informed decision.
When should I give notice to my network? Once the FSA has checked the application it is passed to a committee which will request permission to obtain a reference from your network. It is at this stage you should resign from your network.
What happens to my Professional Indemnity & outstanding commissions?
- PI cover is normally taken by networks on monthly basis and deductions will continue until the end of the policy year – this does vary by network, so you must confirm this.
- When you do require a new PI policy, Compliance First have a number of good quality contacts who can offer you competitive premiums as well as low excess levels and excess discounts.
- Following resignation, you’re unlikely to receive outstanding commissions until any unearned indemnity commission liability is less than that due to them. This may also apply during the network’s notice period, so ensure you check.
- In order to help you with your cash flow, Compliance First will work with you to transfer your agencies to your new practice, and thus also release the commission payments.
Setting up novation agreements
Compliance First will save you time and a great deal of hassle setting up all your novation agreements. Ensuring any future commission due, including renewals will be paid without delay, straight into your bank account.
What happens to my clients’ files?
- In case of a subsequent complaint, both you and your network need to retain elements of clients’ files, in case of a future complaint.
- On resignation, the network will provide a list of requirements for this. While some client information should be handed to the network, some must be kept. Compliance First will advise you on this and ensure you’re covered.
Compliance First will provide all this support and expertise to ensure your application is as smooth and stress free as possible.
To find out if direct authorisation is for you call one of our experienced team on 0141 616 4161 or email enquiries@compliancefirst.co.uk
