FCA Authorisations Q1 2025/26 – What the Latest Data Means for Firms (and How K2 Can Help)

The FCA has published its Q1 2025/26 Authorisations Operating Service Metrics, providing a snapshot of how quickly the regulator is processing applications, registrations, and notifications across the UK financial services sector. For firms seeking authorisation or managing post-authorisation changes, these figures offer a valuable reality check — and a call to get applications right first time.

1. The Big Picture – Strong Overall Performance

Across all authorisation categories, the FCA achieved over 98% on-time processing in most areas, meeting or exceeding its statutory deadlines. For example:

• Approved Persons (SMCR-related) – 99.8% processed within 3 months.

• New Firm Authorisations – 97.9% within 6/12 months.

• Change in Control – 100% within 60 working days.

• Payment Services & E-Money Authorisations – 100% within target timelines.

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The regulator is clearly prioritising efficiency, but the detail shows some pressure points.

2. Where the Bottlenecks Are

While most service lines stayed “green” (on target), a few areas dipped:

• 3rd/4th Money Laundering Directive registrations (3/4MLD) – Performance dropped to 86.9%, missing the 98% target. This indicates delays in processing AML registration applications, which could impact firms entering crypto, FX, and other high-risk sectors.

• Payment Services registrations under the PSRs 2017 – 94.1%, narrowly missing the target.

These categories often suffer from incomplete submissions or insufficient supporting evidence — issues that are fully within a firm’s control.

3. Why This Matters for Firms

The FCA’s metrics aren’t just numbers; they signal regulatory expectations:

• Complete, accurate applications move faster.

• Incomplete or unclear submissions risk being paused under statutory “stop the clock” rules, dragging out timelines.

• AML-related applications face heightened scrutiny and can stall if supporting policies, governance evidence, or beneficial ownership details are weak.

4. How K2 Helps Firms Get Authorised

At K2, we help firms navigate FCA authorisations and variations with precision. Our service includes:

• Application Readiness Reviews – ensuring all documentation, policies, and governance evidence meet FCA standards before submission.

• Regulatory Gap Analysis – identifying where your framework needs strengthening to avoid stop-the-clock requests.

• Specialist AML Registration Support – building complete AML/CTF documentation packs that address FCA concerns up front.

• Post-Authorisation Change Management – smooth handling of Change in Control and Variation of Permission requests.

  
  

With FCA performance metrics showing how costly delays can be, working with an experienced partner like K2 is the smart way to keep your regulatory plans on track.

5. Final Takeaway

The FCA’s Q1 2025/26 report confirms that, for most categories, the regulator is working to deadline — but that doesn’t mean your application will be. Poor preparation remains the number one cause of delay.

If your firm is planning to apply for FCA authorisation, register under the AML Directives, or vary permissions, K2 ensures you get it right the first time — minimising regulatory queries, preventing clock stoppages, and accelerating time to market.

Contact K2 today to discuss your authorisation or variation plans — and turn regulatory timelines into your competitive advantage.