Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

Article 5 Financial information

An applicant seeking authorisation as an investment firm in accordance to the United Kingdom’s legislation corresponding to Title II of Directive 2014/65/EU shall provide to the competent authority the following information on its financial situation:

  1. (a)

    forecast information at an individual and, where applicable, at consolidated group and sub-consolidated levels, including:

    1. (i)

      forecast accounting plans for the first three business years including:

      • forecast balance sheets;
      • forecast profit and loss accounts or income statements;

    2. (ii)

      planning assumptions for the above forecasts as well as explanations of the figures, including expected number and type of customers, expected volume of transactions/orders, expected assets under management;

    3. (iii)

      where applicable, forecast calculations of the firm's capital requirements and liquidity requirements under Regulation (EU) No 575/2013 of the European Parliament and of the Council and forecast solvency ratio for the first year;

  2. (b)

    for companies that are already active, statutory financial statements, at an individual and, where applicable, at consolidated group and sub-consolidated levels for the last three financial periods, approved, where the financial statements are audited, by the external auditor, including:

    1. (i)

      the balance sheet;

    2. (ii)

      the profit and loss accounts or income statements;

    3. (iii)

      the annual reports and financial annexes and any other documents registered with the relevant registry or authority in the particular territory relevant to the company financial statements and, where applicable, a report by the company's auditor of the last three years or since the beginning of the activity;

  3. (c)

    an analysis of the scope of consolidated supervision under Regulation (EU) No 575/2013, including details on which group entities will be included in the scope of consolidated supervision requirements post-authorisation and at which level within the group these requirements will apply on a full or sub-consolidated basis.