FCA scales back consumer credit application fees for small firms

Carmen Reichman
clock

The Financial Conduct Authority (FCA) has revised its application fees for firms seeking full consumer credit authorisation, after it realised that small firms were facing "significant barriers to entry" due to cost.

The move is designed to enable smaller firms to enter the consumer credit market without having to fork out the minimum £1,000 fee or more. Advisers mainly need consumer credit permissions for giving mortgage advice, debt counselling or credit broking services. However, they may also need the extra permission when charging their fees in installments over a period of time, as they may be entering a 'credit agreement'. Today's FCA paper proposes to calculate firm's application fees on the basis of the complexity of their application as well as the size of their turnover. Under the...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Government gives FCA ten weeks to issue an update on its AI work

Government gives FCA ten weeks to issue an update on its AI work

FCA told update is necessary due to ‘significant’ impact AI could have

Hope Coumbe
clock 15 February 2024 • 2 min read
FCA sends 146 alerts in first day of crypto promotion regime

FCA sends 146 alerts in first day of crypto promotion regime

Comes after the watchdog pledged to keep a better eye on the sector

Cristian Angeloni
clock 10 October 2023 • 1 min read
Alexander Sloan FP fails following employment case pay out

Alexander Sloan FP fails following employment case pay out

Financial Services Compensation Scheme details the £140,000 pay out

Kathleen Gallagher
clock 16 February 2023 • 2 min read