It is a criminal offence, under the Financial Services & Markets Act 2000, to provide advice on an investment or insurance contract without the proper authorisation either from the Financial Conduct Authority (FCA) or from a designated professional body
A designated professional body (DPB) licence allows an actuarial firm to provide some regulated activities without being subject to the full FCA regulation.
Our DPB regime offers a more focused approach to full FCA regulation which may be more appropriate for firms which are managed and controlled by members of the IFoA.
If an actuarial firm wishes to advise individuals, it must be regulated by the FCA. A firm can do this, either by being fully authorised by FCA for all classes of business; or by being jointly authorised by the Institute and Faculty of Actuaries (IFoA), for business clients, and the FCA for individual clients. This is known as being an approved professional firm.
You can find more about the type of work that can be performed by a firm with a DPB licence in the DPB Handbook.
How to become licensed
To become licensed, you must first complete the DPB licence application form and submit this to firstname.lastname@example.org
To be considered for a licence you must submit the following:
- a certificate of compliance with the professional indemnity insurance requirements in the DPB handbook, issued by the insurance broker
- compliance plan
- business plan and latest accounts
- two testimonials on behalf of each relevant person
- copy of a standard engagement letter
- complaints handling procedures.
If you are considering making an application, please note:
- you may be asked to provide additional information
- a licence may be granted subject to some conditions or only in respect of some activities
- regulated activities should not be undertaken until we have confirmed to you that a licence has been granted.
Schedule of fees for licensing
The schedule of fees for licensing under the Financial Services and Markets Act 2000 is below
The DPB licensing year runs from 1 April to 31 March. Fees are payable in advance. Licences cannot be backdated and any late submission may result in a firm being unlicensed and unable to provide services.
The licence fee depends on the number of actuaries, the number of offices and the scope of business the firm wants to undertake.
|For each of the first 10 relevant persons:
|For each of the next 10 relevant persons:
|For each of the next 20 relevant persons:
|For each relevant person thereafter:
For each office other than the principal office at which investment business is handled
Where a firm holds both an IMA licence and an EPF licence, an additional 25% of the basic fee is payable.
Where a firm requires either an IMA or an EPF licence, ony the basic fee is payable.
VAT is not payable on fees.