Policy paper

Creating a Provisional Licences Authorisation Regime: Policy Update 2025

A statement setting out the government’s intention to create a provisional licences authorisation regime for early-stage financial services firms seeking FCA authorisation.

• From: HM Treasury
• Published: 4 December 2025

Documents

Creating a Provisional Licences Authorisation Regime: Policy Update 2025

PDF, 135 KB, 14 pages

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Details

As part of the Regulation Action Plan published in March 2025, the government committed to working with the FCA to establish a new authorisation regime which aims to reduce the barriers that financial services firms face when seeking authorisation. The proposed ‘provisional licences’ authorisation regime will enable the FCA to grant time-limited permissions so that firms can get ‘up and running’ in a controlled environment with strong regulatory oversight, whilst working towards full authorisation.

This policy statement sets out details of how the government intends to deliver this.

This will support the government’s ambition to reform the regulatory system to reduce unnecessary burdens on firms, and for the UK to be the world’s most technologically advanced global financial centre, remaining a leading jurisdiction for Fintech firms to start up, scale and list.

Published 4 December 2025