Find out what permissions you'll need to apply to us for authorisation, how much you'll need to pay and what we expect to see in your application.
Corporate finance firms (CFFs) are usually associated with transactions where capital is raised to create, develop, grow or acquire businesses, or in mergers and takeover transactions. CFFs are also likely to provide a range of ancillary services associated with the role of corporate broker.
A CFF derives most of its regulated revenues from corporate finance business[1]. This relates to transactions where existing capital is used, or new capital is raised, to develop a business, project or venture.
Typically, this includes advice and services related to:
- admission to trading
- initial public offerings
- private placings
- placing and open offers
- rights issues
- mergers, acquisitions and disposals of businesses
- stakes in businesses
Permissions you'll need
Typically, these are the permissions required:
- advising on investments
- arranging deals in investments
- agreeing to carry on regulated activities
- making arrangements with a view to transactions in investments
Alongside your application, in order to be classed as a CFF you'll need to apply for a requirement ‘not to conduct designated investment business other than corporate finance business’.
Some CFFs choose to apply to have a wider scope of permissions than those listed above. If this is the case for your firm, we may ask for more information on the rationale for this. Your firm will also have a requirement to not hold or control client money.
Application fee
Your fee falls into Category 4.
Find out more about your application fee[4], including how to pay.
Prudential requirements
Depending on the activities your firm will conduct, it may be:
- a MiFID investment firm, or
- a non-MiFID firm (eg an Article 3 MiFID exempt firm)
Based on the activities and permissions outlined on this page, your firm is unlikely to come under MiFID – but check this by referring to IPRU(INV) Chapter 3[5] in our Handbook.
If you're a MiFID investment firm, you'll:
- be subject to the requirements set out in MIFIDPRU[6] (our prudential sourcebook for investment firms)
If you're a non-MiFID CFF, you must:
- maintain tangible net worth and net assets greater than £10,000
- not hold or control client money
If you're still not sure what sourcebook to refer to, see PERG 13.6[7] in our Handbook, questions 60 to 66.
What to include
Before submitting your application through our Connect[8] system, make sure you've prepared:
- your regulatory business plan, 3-year financial forecast and the other things we expect to see in all applications[9]
- the relevant required forms and supporting material listed below
