Section 250 Gap Analysis: The Complete Compliance Checklist

Phase 1: Gap identification

1. Export your FCA register extract for your firm (available via the FCA Register Extract Service). 2. Prepare a list of all individuals who meet the s.250(3) functional test — those playing a significant role in the making of decisions about, or the managing or organising of, the whole or a substantial part of the organisation's activities. This includes senior managers, major division heads, risk officers, and anyone with authority over a substantial part of operations. 3. Cross-reference the two lists. Everyone on the second list but not on the first represents your potential Section 250 exposure. 4. Document the methodology — you need to show how you identified the population, not just what it was.

Phase 2: Declaration cycle

1. For every individual in the gap, send a formal Section 250 declaration request. The request must identify the specific role and the specific provision it relates to. 2. Track receipt and response. Use a system that records delivery confirmation and response timestamps. 3. Chase non-respondents — document your chase attempts and the dates. 4. Handle refusals formally — document them, escalate to the board, seek legal advice.

Phase 3: Counterparty requests

1. Identify all significant third parties — sub-advisers, outsourced service providers, introducers — who have material roles in your regulated activities. 2. Send written requests for confirmation that each counterparty has completed their own Section 250 analysis. 3. Retain their responses. 4. If a counterparty cannot confirm compliance, escalate to your legal team and consider whether the relationship can continue.

Phase 4: Board evidence pack

1. Generate a litigation-grade evidence pack covering: the gap analysis methodology and results, all declarations sent and received (with timestamps), counterparty confirmation letters, and an executive summary for the board. 2. Ensure the pack is PDF/A-3B compliant with a recorded SHA-256 document hash — these properties make the document verifiable and integrity-demonstrable for regulatory and legal proceedings. 3. Present to the board and obtain a formal minute or resolution acknowledging the analysis and confirming completion.

Phase 5: Ongoing monitoring

1. Set declaration expiry reminders — declarations should be renewed annually or on material role changes. 2. Integrate Section 250 scope review into your new-joiner and leaver processes. 3. Re-run the gap analysis annually and whenever there is a significant change to your firm's structure or personnel. 4. Retain all evidence packs for at least 6 years.

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