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Corporate Finance

Corporate Finance & M&A
FCA Authorisation

Specialist regulatory support for corporate finance advisers, M&A intermediaries, and firms arranging corporate transactions for businesses and investors.

40+
Firms Authorised
99%
Success Rate
10 wks
Avg Timeline

Corporate Finance Regulatory Landscape

The corporate finance sector encompasses advisory services for mergers and acquisitions, capital raising, equity and debt financing, IPOs, and strategic corporate transactions. Firms in this space facilitate business sales, restructurings, and investment opportunities.

FCA regulation of corporate finance has evolved significantly under MiFID II and the Market Abuse Regulation (MAR), with heightened focus on conflicts of interest management, inside information handling, transaction reporting, and investor protection in complex corporate deals.

Successfully navigating authorisation requires demonstrating deep transaction experience, robust conflict management frameworks, and comprehensive due diligence processes that protect both corporate clients and investors throughout complex deal structures.

Typical Services

  • Mergers and acquisitions advisory
  • Capital raising and fundraising
  • IPO and public listing advisory
  • Corporate restructuring and refinancing
  • Private equity and venture capital transactions
  • £Debt and equity underwriting

Required FCA Permissions

Corporate finance firms typically require multiple permissions depending on their transaction types.

Corporate Finance Advice

Advising companies on capital structure, strategy, mergers, acquisitions, and other corporate finance matters.

Key Requirements
  • Transaction experience
  • Sector expertise
  • Financial modeling
  • Valuation methodologies

Arranging Deals in Investments

Facilitating transactions in securities, shares, bonds, and other investment instruments for corporate clients.

Key Requirements
  • Deal structuring capability
  • Investor introduction
  • Transaction documentation
  • Regulatory disclosures

Underwriting

Guaranteeing the purchase of securities being issued, typically for IPOs or capital raises.

Key Requirements
  • Capital adequacy
  • Risk assessment
  • Syndication capability
  • Market making

Advising on Investments

Providing investment recommendations to corporate clients or investors on securities and investment strategies.

Key Requirements
  • Investment analysis
  • Due diligence frameworks
  • Conflict management
  • Research capabilities

Dealing in Investments (Principal)

Trading securities on own account, often in support of corporate finance transactions or market making.

Key Requirements
  • Trading infrastructure
  • Risk management
  • Position monitoring
  • Capital requirements

Making Arrangements with a View to Transactions

Introducing parties and facilitating discussions that may lead to investment transactions.

Key Requirements
  • Client categorization
  • Execution policies
  • Inducements framework
  • Record keeping

Key Regulatory Requirements

Corporate finance firms must demonstrate compliance with MAR, MiFID II, and Prospectus frameworks.

Market Abuse Regulation (MAR) Compliance

Inside information identification and handling procedures
Insider lists maintenance and record-keeping
Market sounding procedures for confidential deal discussions
Suspicious transaction and order reporting (STOR)
Prevention of unlawful disclosure of inside information
Personal account dealing restrictions and monitoring
Market manipulation detection and prevention

MiFID II Corporate Finance Requirements

Organizational requirements and corporate governance
Conflicts of interest identification and management
Best execution obligations for transaction execution
Client categorization (professional vs retail)
Inducements and fee disclosure requirements
Transaction reporting to FCA within required timeframes
Record-keeping of advice, recommendations, and services

Prospectus Regulation (for Public Offerings)

Prospectus approval and publication requirements
Due diligence on prospectus contents and disclosures
Responsibility statements and liability frameworks
Supplementary prospectus for material changes
Passporting of prospectuses across EEA (where applicable)
Financial information and disclosure standards
Working capital statements and financial projections

Conflicts of Interest Management

Identification of conflicts across all business activities
Chinese walls and information barriers between divisions
Independent research and advisory separation
Disclosure of material conflicts to clients
Declining engagements where conflicts cannot be managed
Staff dealing and personal account trading policies
Related party transaction approval processes

Due Diligence and Know Your Client

Comprehensive client due diligence and onboarding
Beneficial ownership identification and verification
Anti-money laundering (AML) and sanctions screening
Source of funds and source of wealth verification
Ongoing monitoring and periodic KYC refresh
Enhanced due diligence for high-risk clients
PEP (Politically Exposed Person) identification

Financial Resources and Capital Requirements

Base capital: £125,000 for most corporate finance permissions
Higher capital for dealing and underwriting activities
Professional Indemnity Insurance: typically £1.6m minimum
Own funds calculation including capital at risk
Fixed overhead requirement (25% of previous year's costs)
Wind-down planning and orderly cessation analysis
Financial projections for minimum 3 years

Common Authorisation Challenges

Issues we frequently help corporate finance firms navigate during the FCA application process.

Demonstrating Transaction Experience

The FCA expects senior individuals to have significant M&A and corporate finance experience. We help showcase relevant transaction history, team credentials, and sector expertise through compelling narratives and documentation.

Inside Information Procedures

Managing inside information under MAR is critical for corporate finance. We implement comprehensive frameworks covering insider lists, wall-crossing procedures, market soundings, and suspicious transaction reporting.

Conflicts of Interest Framework

Corporate finance advisory often involves multiple parties with competing interests. We design robust conflict identification, assessment, and management frameworks including Chinese walls and disclosure protocols.

Capital Adequacy and PII

Meeting capital requirements and securing appropriate Professional Indemnity Insurance can be challenging. We model capital needs, structure resources efficiently, and connect firms with specialist insurance brokers.

Transaction Reporting

MiFID II transaction reporting obligations can be technically complex. We help firms implement reporting mechanisms, select appropriate reporting solutions, or arrange ARM (Approved Reporting Mechanism) relationships.

Client Categorization

Properly categorizing corporate clients as professional or retail impacts regulatory requirements. We provide frameworks for categorization, opt-up procedures, and appropriate documentation for different client types.

How We Support Corporate Finance Firms

Pre-Application

  • Business model scoping and permissions strategy
  • Transaction experience assessment and presentation
  • Senior Manager identification and team structuring
  • Capital and financial resources planning
  • Systems and infrastructure requirements
  • Conflicts framework and information barriers design

Application Preparation

  • Complete Connect application and supporting documents
  • Inside information and MAR compliance procedures
  • Conflicts of interest management framework
  • Corporate finance advisory agreements templates
  • Transaction reporting arrangements and systems
  • Compliance manual covering all regulatory obligations

Post-Submission

  • FCA query responses and clarifications
  • Senior Manager interview preparation and coaching
  • Additional documentation and evidence provision
  • Conditional approval requirement fulfillment
  • Post-authorisation compliance monitoring setup
  • Ongoing regulatory advisory and updates

Ready to Get Authorised?

Speak with our corporate finance regulatory specialists to discuss your FCA authorisation.