FCA authorisation costs and fees

How the FCA charges for authorisation

The FCA charges three distinct types of fee, and it helps to keep them separate when you build your budget. The first is the application fee, a one-off charge paid when you submit your application. The second is the annual, or periodic, fee that every authorised firm pays each year to fund the FCA's ongoing supervision. The third is a permission change fee, charged when an existing firm varies its permissions.

The application fee is paid through the FCA's online system, Connect, using a credit or debit card at the point you submit. Crucially, the fee is non-refundable. As the FCA states, you pay the fee to submit an application, and it is not returned even if your application is unsuccessful or you withdraw it. That makes getting the application right the first time a matter of real financial consequence.

Since 24 January 2022, the FCA has used a simplified structure of ten pricing categories. This replaced a previous arrangement of more than eighty separate charges, which many applicants found confusing. Each category now covers a defined group of permissions, and your fee is determined by the most expensive category that applies to any permission you request.

The rules that govern these fees sit in the Fees manual (FEES) of the FCA Handbook. FEES 3 deals with application fees, while FEES 4 covers the periodic fees you pay once authorised. Working directly from these primary sources, or the FCA's own fees pages, is the safest way to confirm the amount that applies to you.

FCA application fee categories and amounts

The table below shows the current ten pricing categories and the application fee for each, as published on the FCA's authorisation and registration application fees page. These are the figures shown by the FCA in 2026 (the page was last updated on 13 July 2026). Because the FCA reviews its fees every year, always check the current figure before you apply.

The category your firm falls into is driven by the complexity of the permissions you are seeking. Most retail intermediaries sit at the lower end of the scale, while firms operating market infrastructure such as trading venues or investment exchanges sit at the top. The jump between categories is significant, so understanding exactly which permissions you need has a direct effect on cost.

If your application covers permissions that span more than one category, you pay the fee for the highest category that applies. You do not pay a separate fee for each permission. This means adding a single higher-category permission to an otherwise straightforward application can move you into a more expensive band, so it pays to scope your permissions carefully.

The amounts below are the standard published category fees. Some specialist applications, such as certain payment services or e-money registrations, are mapped to specific categories, and a small number of firms may qualify for reduced or specific charges set out elsewhere in FEES 3.

Which category does your firm fall into?

The most common question applicants ask is which category their business sits in. For the large population of retail-facing firms, the answer is often Category 4, at £2,820. The FCA's own guidance places financial advisers, mortgage brokers and general insurance intermediaries in this category, so a typical advice or broking firm should budget from this figure upwards.

Consumer credit applicants can fall into several categories depending on the permissions requested. Limited permission activity may sit as low as Category 2, straightforward full-permission applications in Category 3, and more complex credit business in Category 5 or Category 6. The distinction between limited and full permission has a direct bearing on the fee, so it is worth confirming which you actually need.

Payment and e-money firms are mapped to specific categories. A small payment institution, a small e-money institution and a registered account information service provider each fall into Category 3 at £1,130. An authorised payment institution sits in Category 4 or Category 5 depending on the activities, and an authorised e-money institution sits in Category 5 at £5,640.

Firms seeking cryptoasset registration under the money laundering regulations fall into Category 6, at £11,260, reflecting the additional scrutiny these applications receive. If you are unsure where you sit, the FCA's pricing categories page maps permissions to categories in detail, and this is the definitive reference to check before you commit to a figure.

A practical way to pin down your category is to list every regulated activity your business model requires, then identify the highest category among them. That highest category sets your fee. Preparing this permissions map early also helps you avoid requesting permissions you do not need, which can inflate both your fee and your ongoing obligations.

Ongoing FCA fees after you are authorised

The application fee is a one-off cost, but authorisation brings a recurring obligation. Every authorised firm pays an annual periodic fee that funds the FCA's ongoing regulation and supervision. This is set each year and invoiced from July onwards, so it is a permanent line in your budget rather than a one-off.

Periodic fees are calculated using fee-blocks that group firms by similar regulated activities. The FCA divides its annual funding requirement across these blocks, then charges each firm a minimum fee plus a variable element based on tariff data such as annual income or funds under management. Smaller firms often pay only the minimum fee, while larger firms pay more as their tariff data rises above set thresholds.

For the 2025/26 fee year, the FCA set a minimum annual fee of £2,000 for most firms in the 'A' fee-blocks. Dual-regulated firms, which are supervised by both the FCA and the Prudential Regulation Authority, pay a reduced minimum of £1,000 to the FCA. These minimum figures are reviewed annually, so treat them as a current reference point rather than a fixed cost.

You will receive a single invoice covering your FCA fee together with any other levies that apply to your firm, such as those for the Financial Ombudsman Service or the Financial Services Compensation Scheme. Payment is generally due within 30 days. Firms whose prior-year fees exceeded £50,000 receive an 'on account' invoice for half that amount earlier in the year, so larger firms should plan their cash flow around this.

The wider cost of getting authorised

The FCA fee is rarely the largest part of the total FCA authorisation cost. The bigger investment is usually the work of preparing an application that meets the FCA's threshold conditions. This includes drafting a detailed regulatory business plan, building compliance policies and procedures, preparing financial projections, and demonstrating that your systems and controls are fit for purpose.

Many firms engage compliance consultants or specialist legal advisers to help them prepare. Fees for this support vary widely depending on the complexity of the permissions and the maturity of the firm, and they can comfortably exceed the FCA application fee itself. Approved persons under the Senior Managers and Certification Regime also need to be identified, assessed and evidenced, which takes time and internal resource.

You should also budget for the cost of your own time. FCA authorisation typically takes several months, and applications that are incomplete or unclear are more likely to face questions or delays, extending the timeline further. Since the application fee is non-refundable, an application that is returned or refused represents a real financial loss on top of the effort already invested.

This is where structured preparation pays for itself. A well-scoped application that requests only the permissions you need, supported by clear documentation, keeps both your application fee and your ongoing periodic fees proportionate. Platforms such as Nasara Authorise are designed to help firms map their permissions, prepare the required documentation and build a credible application, reducing the risk of costly rework or refusal.

When you set your budget, it is realistic to treat the FCA application fee as a starting point and to plan for professional support, internal resource and a multi-month timeline on top. Firms that plan for the full cost of authorisation, rather than the headline fee alone, tend to move through the process more smoothly and with fewer surprises.

Conclusion

The FCA authorisation cost is best understood in layers. There is the one-off, non-refundable application fee, set by ten pricing categories that range from £280 for Category 1 to £225,170 for Category 10 on the FCA's 2026 figures, with most retail firms sitting in Category 4 at £2,820. On top of that sits an annual periodic fee, with a minimum of £2,000 for most 'A' fee-block firms in 2025/26, and the wider cost of preparing a credible application.

Because the FCA reviews its fees every year, always confirm the current figure for your category on the FCA's own fees pages before you apply, and scope your permissions carefully so you pay for what you actually need. Treating authorisation as a total investment, rather than a single fee, is the surest way to budget accurately and avoid costly rework. This guide is educational information and not a substitute for tailored regulatory advice.

Frequently asked questions