Preparing for an FCA authorisation interview

When and why the FCA calls an interview

An interview is not an automatic step in every authorisation application. The FCA has discretion over whether to interview a senior management function (SMF) candidate, and it will not always do so. Where it does, the FCA explains that it may invite candidates for an interview for several reasons.

According to the FCA, these reasons include concerns about a candidate's fitness and propriety, questions around how the candidate will address challenges at the applicant firm, and other matters such as the potential impact of the role given the size of the firm or the nature of its business. In other words, an interview can be prompted by something specific in the application, or simply by the seniority and significance of the role.

Interviews are more likely for the most senior positions, such as a Chief Executive, Chair, Senior Independent Director, or roles like Compliance Oversight (SMF16) and the Money Laundering Reporting Officer (SMF17). This does not mean an interview signals a problem. It is a normal part of how the FCA satisfies itself that a candidate is suitable for a demanding role.

Because the FCA cannot always predict which applications will need an interview, the safest approach is to prepare every senior candidate as though one might be called. Preparation that strengthens the interview also strengthens the underlying application.

Who sits on the interview panel

The FCA explains that a candidate will be interviewed by a relevant panel, which is likely to include representatives from its authorisations and supervisory teams. The exact composition depends on the firm, the role and the topics to be explored.

Importantly, the FCA says it tries to keep the panel as small as possible. Candidates should not expect to face a large committee. The setting is intended to allow a focused, professional conversation rather than to intimidate.

If a candidate needs any reasonable adjustments for accessibility purposes, the FCA asks that you let it know in advance of the interview. This is worth flagging early so that arrangements can be made without disruption on the day.

The FCA also notes that in some cases it may invite a candidate back for a further interview. This is not a sign of failure. It usually means the regulator wants to explore particular points more fully before reaching a decision.

The topics the FCA is likely to explore

One of the most helpful features of the FCA process is that it tells you in advance what areas it wishes to explore at the interview. This removes guesswork and lets you prepare around the specific themes the regulator has flagged, rather than trying to anticipate everything.

The FCA indicates that candidates are expected to understand their regulatory responsibilities and their role, and to explain how their knowledge or experience equips them to carry out their duties. These are foundational expectations for any senior manager and are commonly at the centre of the conversation.

Beyond the role itself, the FCA may explore wider areas connected to the firm. These can include the market in which the firm operates, the firm's business model and strategy, risk management and control, governance and oversight, the regulatory framework and expectations, the firm's culture, and the implementation of regimes such as the Consumer Duty. The list below summarises common themes, but the areas confirmed to you in advance always take priority.

A candidate is expected to be accountable for the application and able to explain all the material in it. If your name is on a document or a policy, you should be able to speak to it in your own words and describe how it will work in your specific firm, not simply recite the FCA's rules back to the panel.

How the interview links to the fit and proper test

The interview does not exist in isolation. It is one of the ways the FCA gathers evidence to decide whether a candidate is fit and proper to perform an SMF role. The regulator will only approve an application once it is satisfied on this point.

The FCA's fitness and propriety assessment rests on three main criteria set out in the FIT part of its Handbook: honesty, integrity and reputation; competence and capability; and financial soundness. An interview most often focuses on competence and capability, because that is where a live conversation adds the most insight, but any of the three can be relevant depending on the application.

The FCA has described the fit and proper standard as being about whether a candidate is not only competent and trustworthy now, but also likely to remain so in the future. That forward-looking framing is useful to keep in mind. The panel is interested in your judgement and your understanding, not just in whether you can quote a rule.

This is why authenticity matters. Answers that show genuine grasp of the firm and honest acknowledgement of what you would do when something goes wrong tend to land better than polished but hollow responses. The assessment is holistic, and the interview is a chance to demonstrate the substance behind the paperwork.

A practical preparation checklist

Good preparation begins well before any interview is scheduled, because a strong application reduces the chance of an interview being needed at all and makes any interview easier to handle. The FCA expects firms to be ready, willing and organised, with final documents reviewed and signed off before submission.

The steps below offer a general preparation checklist for a senior candidate. Treat it as a starting point and always prioritise the specific areas the FCA confirms it wants to explore. None of this is a substitute for tailored professional support where your circumstances are complex.

Above all, be able to explain your own application in your own words. The FCA is clear that applicants should be accountable for their application and able to explain all the material in it, and that firms should not simply repeat the regulator's rules back within their policies without showing how they apply to their specific business.

Rehearsing out loud with a colleague or adviser is one of the most effective techniques. It surfaces gaps in your reasoning and helps you give clear, concise answers under questioning rather than reading from a script.

What happens after the interview

The interview is one input into a broader decision, not the decision itself. After it, the case officer continues to assess the application against the FCA's criteria and may follow up with further questions or requests for information.

It is helpful to understand the statutory timescales. For approved persons applications, the FCA must decide on a complete application within three months of receiving it. Where an application is incomplete or where the FCA needs more information or an interview, the regulator may effectively pause its assessment while those matters are resolved.

There are three broad outcomes for an SMF application: approval, an approval that is conditional or time-limited, and refusal. An interview that surfaces further questions may lead the FCA to seek more evidence before it can be satisfied, which is one reason preparation and honest engagement are worthwhile.

Whatever the outcome, treat the process as a demonstration of the same qualities the FCA is assessing: clarity, accountability and a genuine understanding of the firm and its obligations. Firms that engage constructively and respond promptly tend to keep the process moving. If you want structured help getting application and interview ready, Nasara Authorise supports firms through the authorisation journey.

Conclusion

An FCA authorisation interview can feel daunting, but it is a manageable and predictable part of the process once you understand it. The FCA tells you in advance what it wants to discuss, keeps the panel small, and focuses on whether a candidate genuinely understands their role, their firm and their obligations. Preparation is largely about knowing your own application inside out and being able to explain it honestly.

The most effective preparation strengthens the application as well as the interview. If you can be ready, willing and organised, speak to every document in your own words, and demonstrate real competence against the fit and proper standard, you put yourself and your firm in the strongest possible position. This guide is educational and general in nature, so seek tailored support where your situation is complex.

Frequently asked questions