What does a Regulatory Business Plan need to say?

Sep 23rd '21

A regulatory business plan is your showcase to demonstrate understanding & forethought.


The regulatory business plan should demonstrate that the targets set by the candidate are realistic, as well as financially and operationally manageable.


Some fundamental questions that the regulatory business plan must answer:

Why you? The regulatory business plan could create a poor impression if it does not describe to the regulator its intended market and comparative advantage: whether it would offer something new to the market and the elements of its services/products that would make them stand out from their competitors.


Answer this – “why are you best positioned to offer and deliver on this proposition?


You against the others: A competitive idea and promising business case is backed up with research and facts. This is a challenging part of the project; the candidate’s regulatory business plan must demonstrate that there is a market for their products and services, and also be aware of the competition and their expected share in the market.


Vitally, the regulatory business plan must also demonstrate its understanding of the dynamics of the specific market and how the proposed business will meet customer needs.


Known unknowns: Here, the question is how candidates will approach the problem of partial or unavailable information. Some regulatory business plan’s are extremely ambitious about their target markets and customers; some others are optimistic as to the costs of running a business, especially operational costs and this may lead to expected costs being presented in a superficial manner in the regulatory business plan.


All projections and estimates must be backed by thorough and trustworthy market research or accurate business information.


From a regulator’s perspective, stating all the possible expenses and potential financial needs in the regulatory business plan provides a useful starting point into assessing business model viability. It also demonstrates that the applicant has a sound grasp of its figures and market.


A start-up may not have all the information to-hand on day-one when it meets the regulator, but it should have reasonable estimates and a plan of the timeline and actions to get this information and must integrate it into the plan before submitting it.


New entrants will have to describe in their plan how they will comply with complex prudential and conduct regulations. This is not easy, even the UK’s most established institutions have got themselves into significant difficulties due to regulatory breaches.


We provide all Financial Conduct Authority (FCA) Authorisation applicants with a template business plan with not only headings, but additionally pointers and ideas of what needs to be involved.


Ask us for details. Call us today on 020 8087 2377 or email info@lscprom.co.uk.


About us

At LS Consultancy, we offer a complete solution with a range of cost effective, regulatory compliance services including copy advice and copy development which are uniquely suited to supporting firms.


Explore our full range today.


Contact us


Why Not Download our regulatory business plan template or take a look at all our FREE Brochures! Click here.


Call Us Today on 020 8087 2377 or send us an email.