Context
The FCA recently reviewed its interpretation of the consumer credit legislation for Limited Permission secondary credit brokers. Specifically, how the legislation applies to credit broking firms whose main business activity is the supply of non-financial services. As part of this review, some firms that are authorised as a Full Permission secondary credit broker firm may be eligible to become authorised as Limited Permission firm, depending on what activities they undertake.
Key points to note
- Firms can use a decision tool on the FCA’s website for further information about whether they may be impacted by the review.
- If, as a result of the review, a firm is able to change from Full Permission to Limited Permission, it might be entitled to a refund of a proportion of its last regulatory fees.
- The FCA’s new web page for secondary credit broking applicants has more information about the permissions an authorised firm will need based on the activities it intends to carry out. The FCA has also created a new ‘Apply to become a consumer credit broker’ web page. Both of these web pages feature Q&A-style information.
Next actions
None – for information and awareness.