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Specialist support in obtaining your Part 4A permission to accept deposits

Overview

Obtaining approval for a Part 4A permission can be a challenging and lengthy process. As you start your journey to become an authorised bank there will be an extensive set of requirements to be met, and documentation to be provided to the Regulators. The PRA and FCA will need to have comfort that you meet the relevant threshold conditions and that the granting of a permission will not harm the achievement of their objectives.

However, the process is also an opportunity to gain regulatory feedback on your business plan and evolve your thinking around the capabilities and frameworks required throughout the stages of authorisation and post-authorisation.

Process for obtaining a banking licence in the UK


How can Deloitte help?

Our new bank start-up team has deep expertise and a proven track record of helping firms manage the authorisation process to a successful completion. Together with Deloitte’s extensive network of SMEs and drawing on a team including ex-regulators and industry practitioners, we can support you throughout the end-to end application process, including any nuances and potential pitfalls you may face when seeking regulatory approval.

Our team can provide support in a broad range of areas from the early stages of business model development, engaging with Regulators, drafting and submission of key authorisation documentation and helping to set up and embed the operating model and associated infrastructure. We offer bespoke levels of support, ranging from a review and challenge approach to more hands-on support with documentation of regulatory documents and policies. Our core services include, but are not limited to, the following areas:

Business Model Design

  • Development of your business model through workshops to identify the optimal license type based on your proposed business, products and services.
  • Support with choosing the authorisation route best suited to your firm, and how the differing Regulators’ objectives may impact you.

Regulatory Business Plan (RBP)

  • Support with the full documentation of RBP with supporting market research.
  • Provision of review and challenge over the firm’s RBP to ensure it meets regulatory expectations and best practice.
  • Pre-emptively identify potential regulatory questions and challenges.
  • Prepare senior management for initial engagement with the Regulator.

Key Regulatory Documents

  • Support with the drafting of key documents as part of the approval process.
  • Support with development of stress testing capabilities.
  • Provision of review and challenge of key regulatory documents to identify weaknesses and potential areas of regulatory focus.

Risk Management Framework

  • Assistance in designing and implementing a robust risk management framework that meets regulatory expectations for a new entrant.

Operational Resilience

  • Guidance on meeting supervisory expectations and regulatory rules around operational resilience and outsourcing.

Governance / Senior Manager Regime

  • Providing insights on regulatory expectations for new firm’s governance structures and preparing candidates for Senior Manager Function Interviews.

Regulatory Expectations

  • Advice on end-to-end engagement with the Regulators to ensure key messages and feedback are understood and acted upon appropriately.
  • Insight on the evolution of regulatory expectations and business maturity beyond the application phase.

Wider Support

  • Support with some of the operational aspects of establishing new banks: This includes areas such as IT vendor selection, assessment of wholesale funding options, real estate, tax support and legal services associated with establishing a new legal entity.

Key Resources

From dream to reality: obtaining a banking licence
A ride up Capit(a)l Hill
Getting War Ready: Entering and exiting mobilisation
Good governance: the key foundation to a successful new bank
Forecasting into the unknown

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Key Contacts

Andrew Freeman

Andrew Freeman

Partner

Andrew is a chartered accountant with over 20 years experience in assurance and advisory services for FS clients. He co-leads our cross-service line Regulatory Reporting Assurance proposition, helping... More

Alex Szmigin

Alex Szmigin

Partner

Alex is a Partner in Deloitte’s Risk Advisory practice. Alex is an ex banking regulator with over nine years of consulting experience, and is a chartered accountant. Alex has deep experience of bankin... More

Faiza Farooq

Faiza Farooq

Director

Faiza is a Director within the Prudential Regulation team in Deloitte’s Conduct & Prudential team within Audit & Assurance. Prior to joining Deloitte in November 2017, Faiza spent over seven years wit... More

Key Contacts

Philip Gerard

Philip Gerard

Associate Director

Philip is an Associate Director in Deloitte’s Risk Advisory practice, specialising in Prudential Risk and Regulation. He has successfully supported a range of firms to obtain authorisation from UK reg... More

Kayley Lam

Kayley Lam

Senior Manager

Kayley is a Senior Manager in Deloitte’s Risk Advisory practice, specialising in Prudential Risk and Regulation. She is a key team member of the UK new banks authorisation business and has helped a ra... More

Key Contacts

Calum Upchurch

Calum Upchurch

Senior Manager

Calum is a Senior Manager in the Prudential Risk team in London. He joined following 7 years at the Bank of England, where he gained considerable experience within UK deposit takers supervision. Calum... More

Michael Burden

Michael Burden

Manager

Michael is a Manager working within the Conduct and Prudential Assurance team, covering new firm authorisations, regulatory reporting assurance engagements, solvent wind down planning and regulatory c... More