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Getting FCA authorised

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Our approach

FCA approach

Gateway is key

High minimum standards

Getting inside your business

Flexible for different size firms

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The journey for your firm

OFT regulation

FCA interim permission

FCA application

FCA authorisation

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Step 1

Now• If firms want to

start offering consumer credit

Your application

period

• If firms have interim permission

• If firms miss this date, they will need to stop regulated credit activities

When to apply

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The difference between a permission and the consumer credit licence (CCL)• There’s no longer a licence, and no longer categories A,

B, C etc

• The authorisation application is a fresh start and is unrelated to the CCL

• Firms apply for ‘Part 4A permission’: and have to choose full or limited permission

• Firms choice is based on the regulated activities they carry out (i.e. the type of business) :– Some activities mean firms have to choose ‘full permission’ – Some activities will allow firms to qualify for ‘limited permission’

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Step 2: Decide the level of permission

Two categories of FCA permission

Full permission

Limited permission

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How to decide the permission level

1• Look at what credit business

the firm does

2• See how it matches FCA

‘regulated activities’

3• Check whether those activities

mean full or limited permission

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Step 3: Prepare the application

• Firms will need to give us detailed information about their business

• Firms may need to prepare their supporting information now even if they plan to apply in several months’ time

• Firms should review our website to see what we will ask them to include, then start collating the information now

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Examples of what we will ask for

• Basic information about the firm• How the firm is set up, who works there• Who owns or influences the business

(controllers)• How firms make their money (business plan)• How firms make sure their business keeps to

our rules (compliance monitoring)• Financial information• The firm’s history and any ‘significant

events’ we should know about

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Approved persons

• Our approach is to ensure senior management responsibility

• Having ‘approved persons’ is a key way to achieve this

• Senior individuals in the firm will need to apply to be the approved person, and prove they are fit and proper

• We will hold the person accountable

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Step 4: Apply

• Most firms apply using our Connect online system

• We have help text within Connect and guidance forms you can download on our website

• You may need to send in a paper form if you are already regulated by us for other things

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How much it costs to apply

• Firms will need to pay an application fee when they apply

• The fee will be a calculation based on how complex we think the application is and the consumer credit income

• We have put all firms into different complexity categories based on what they do:– Limited permission– Straightforward: eg credit broker– Moderately complex: eg, lender– Complex: eg debt management company

Firm’s credit income

Limited permission

Straight-forward

Moderatelycomplex

Complex

Up to £50,000 £100 £600 £800 £1,000

£50-£100,000 £500 £750 £1,000 £1,250

£100-£250,000 £500 £1,000 £1,500 £2,000

£250,000-£1 m £500 £1,500 £5,000 £7,000

over £1 million £500 £5,000 £10,000 £15,000

Application fee breakdown

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Firms details should be kept up to date through our consumer credit interim permission website: search “CCI” on fca.org.uk

Changing firm’s details during interim permission

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• All authorised firms will appear on our register• Our enforcement team will seek out firms that

carry on credit business without permission

Ensuring a level-playing field