Question to the HM Treasury:

To ask His Majesty's Government what steps they plan to take to implement the provisional licences authorisation scheme for financial services start-ups; and how they plan to ensure that the scheme balances provisional authorisation with consumer and market safeguards.

The government has committed to introducing a provisional licence authorisation regime for financial services firms seeking authorisation from the Financial Conduct Authority (FCA).

Introducing a provisional licence authorisation regime will require primary legislation, which the government will bring forward when Parliamentary time allows.

The regime will retain the high standards necessary to provide regulated financial services in the UK, and the FCA will operate the regime in line with its statutory objectives. Firms in the provisional licence authorisation regime will be subject to close supervision, and will be required to comply with relevant rules and requirements during the provisional licence period. The FCA will have its full suite of supervisory and enforcement powers in relation to these firms.

Further details can be found in the government’s recent policy update: https://www.gov.uk/government/publications/creating-a-provisional-licences-authorisation-regime-policy-update-2025