Applicant questions
- - What capital or financial resource requirement applies to the requested permission?
- - How long can the applicant operate under base-case and stress-case assumptions?
- - Does custody, dealing, margin, client assets, or retail activity change the capital analysis?
Why regulators ask
- - Regulators expect the applicant to be solvent, resourced, and realistic about regulatory cost.
- - Capital evidence supports prudential confidence, client protection, and wind-down planning.
- - Thin funding or unsupported forecasts make the application look unready.
What good looks like
- - The capital calculation, bank evidence, forecasts, and business plan tell the same story.
- - Base-case and stress-case assumptions are clear and tied to headcount, technology, compliance, and revenue timing.
- - Funding sources and shareholder support are documented.
Documents to prepare
- - Capital calculation and financial resources memo.
- - Bank statements or funding evidence.
- - Three-year forecast and stress case.
- - Regulatory cost budget.
- - Shareholder loan, capital injection, or support documents.
Red flags
- - Forecasts assume licence approval, revenue, and fundraising before costs are funded.
- - Capital evidence ignores extra permissions such as custody or dealing.
- - Funding depends on an unsigned investor commitment.
Build steps
- 1. Identify capital/resource rules for the requested activity and jurisdiction.
- 2. Build forecasts from operating costs upward, not from optimistic revenue downward.
- 3. Connect capital planning to wind-down, insurance, outsourcing, and headcount.
Disclaimer
Information on LicenseCompare is for general educational purposes only and does not constitute legal, regulatory, financial, tax, investment, or professional advice. Licensing requirements depend on facts and change over time. Always consult official regulator materials and qualified professional advisers.