Unrestricted Getting FCA authorised 1

Unrestricted Our approach 2 FCA approach Gateway is key High minimum standards Getting inside your business Flexible for different size firms

Unrestricted The journey for your firm 3 OFT regulation FCA interim permission FCA application FCA authorisation

Unrestricted Step 1 4 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

Unrestricted 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’ 5

Unrestricted Step 2: Decide the level of permission 6 Two categories of FCA permission Full permission Limited permission

Unrestricted How to decide the permission level 7 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

Unrestricted 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 8

Unrestricted 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 9

Unrestricted 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 10

Unrestricted 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 11

Unrestricted 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 12

Application fee breakdown 13

Unrestricted 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 14

Unrestricted 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 15