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ARTICLE · 22 DECEMBER 2025

The FCA's Provisional Licenses Authorisation Regime

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As part of the government's Regulation Action Plan published in March 2025, the government committed to working with the FCA to establish a ‘provisional licence' authorisation regime.

United KingdomFinance and Banking
Alexandra Green
Alexandra Green
Michael Sholem
Michael Sholem
Rachel Serene
Rachel Serene

As part of the government's Regulation Action Plan published in March 2025, the government committed to working with the FCA to establish a 'provisional licence' authorisation regime.

The purpose of the regime is to reduce the barriers that firms face when seeking authorisation and enable the FCA to grant time-limited permissions so that firms can get 'up and running' in a controlled environment with strong regulatory oversight, whilst working towards full authorisation.

HM Treasury has now issued a policy update on the proposed regime outlining how the regime will operate.

1. What is the scope of the regime?

It is intended that the regime will apply to firms not currently licensed under the Financial Services and Markets Act 2000. HM Treasury confirms that the regime will not be available for:

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