All authorised firms are required to have an FRN, a unique identifier.

FRNs are currently composed of six digits but the number of these unique numbers is close to running out as so many have been used.

Nearly 1m six digit FRNs have been used.

The FCA said this week it would move to seven digit FRNs, from the current six digit numbers, to enable a larger number of numbers to be used.

The regulator said the change would apply only to newly authorised firms. Existing firms will retain their six digit FRNs.

The new seven digit FRNs would apply after the six digit FRNs are exhausted.

The FCA said the change would apply to both six-digit Firm reference Numbers (FRNs) and six-digit Product Reference Numbers (PRNs) which help to uniquely identify funds. 

The FCA said: “We’re likely to reach the six-digit limit (999999) during 2023, given the volume of applications and notifications we receive.

“We’re planning a move to seven-digit FRNs and PRNs for all newly registered firms and funds. Firms that have previously been allocated a six-digit FRN or PRN will keep that number. They won’t change. Seven-digit numbers will start to be allocated for new applications and notifications once our six-digit range is exhausted.

“We haven’t fixed a date for when this will happen but we’re on track to make the necessary changes to our internal systems in good time.”

The watchdog says that an application for authorisation can take up to six months if the application is complete but could take up to 12 months if the application is not complete. All firms have to pay an application fee.