CITY law firm Hogan Lovells has launched a free tool on its website to guide fintech firms through the regulatory authorisation process.
The Engage Authorisation tool guides firms through the key stages of applying for authorisation from the Financial Conduct Authority (FCA) so they know the stage they are at and what more they need to do.
Steve Murphy, head of financial services regulatory consulting at Hogan Lovells, said the tool would help firms address the knowledge gap and avoid the high cost of general applications.
“The cost for fintechs to get FCA authorisation can be up to £200,000 especially when combined with uncertainty over the outcome,” Murphy said.
“Our Authorisation Tool aims to solve this problem, helping them understand the process, and offering competitively priced tailored support based on their business model.”
The law firm also has a regulatory accelerator tool with trade body Innovate Finance that helps startups understand and navigate regulatory requirements from the FCA.
“The authorisation tool is ideal for fintech startups that lack the resources or expertise to solely manage the long process towards authorisation,” Charlotte Crosswell, chief executive of Innovate Finance, said.
“Combined with its regulatory accelerator, Hogan Lovells has created a valuable online tool that addresses this issue, thereby giving members and the wider fintech ecosystem the autonomy, knowledge and support to navigate regulatory processes more efficiently.”