FCA authorisation
Discussion
I'm trying, but so far failing, to find a definitive answer on whether my company needs to be authroised by the FCA.
The intention is that we'll be introducing companies to a third-party credit firm, who will provide credit facilities for purchases from us.
However, we'll only be dealing B2B, and won't be offer the credit facility ourselves.
From what I've read on the FCA site, our activity falls under Credit Brokerage, but outside the Consumer Credit Agreement, and so don't need to be authorised.
Does anyone have a bit more knowledge on the subject and could shed some light?
Thanks.
The intention is that we'll be introducing companies to a third-party credit firm, who will provide credit facilities for purchases from us.
However, we'll only be dealing B2B, and won't be offer the credit facility ourselves.
From what I've read on the FCA site, our activity falls under Credit Brokerage, but outside the Consumer Credit Agreement, and so don't need to be authorised.
Does anyone have a bit more knowledge on the subject and could shed some light?
Thanks.
I took legal advice on this two years ago from a solicitor. I was going to set up a business providing loans to limited companies, with a PG taken from directors.
My legal advice concluded that FCA regulation/ consumer credit licence was NOT required as they were solely B2B transactions.
Hope that helps.
My legal advice concluded that FCA regulation/ consumer credit licence was NOT required as they were solely B2B transactions.
Hope that helps.
Under the CCA 74 brokerage to 'individuals' is covered - this covers consumers, sole traders and aprtnerships up to 3 people i believe.
It does nto cover limited companies - as long as you are limiting it to limited companies you should be outside the scope of the CCA and not beed authorisation for credit.
That said if you offer other financial services you may need authorisation for soem other reason.
It does nto cover limited companies - as long as you are limiting it to limited companies you should be outside the scope of the CCA and not beed authorisation for credit.
That said if you offer other financial services you may need authorisation for soem other reason.
Output Flange said:
I'm trying, but so far failing, to find a definitive answer on whether my company needs to be authroised by the FCA.
The intention is that we'll be introducing companies to a third-party credit firm, who will provide credit facilities for purchases from us.
However, we'll only be dealing B2B, and won't be offer the credit facility ourselves.
From what I've read on the FCA site, our activity falls under Credit Brokerage, but outside the Consumer Credit Agreement, and so don't need to be authorised.
Does anyone have a bit more knowledge on the subject and could shed some light?
Thanks.
This is what I do as a consultancy (Regulatory permissions), after nigh-on ten years as an FSA Authorisations Case Officer.The intention is that we'll be introducing companies to a third-party credit firm, who will provide credit facilities for purchases from us.
However, we'll only be dealing B2B, and won't be offer the credit facility ourselves.
From what I've read on the FCA site, our activity falls under Credit Brokerage, but outside the Consumer Credit Agreement, and so don't need to be authorised.
Does anyone have a bit more knowledge on the subject and could shed some light?
Thanks.
As optimistic as all the advice to 'call them' is - you'll be lucky to get anything more than a pat answer to even a simple question, and anything that requires any sort of thought over the question - will find you advised to find a solicitor or Regulatory adviser! It's partly why I left them - I was more use on the outside, to the outside world.
So - all the advice above from the others is of course correct. Note that the Consumer Credit Act 1974 has in effect been abolished/dissolved - replaced by augmentations to FSMA 2000, with a dedicated section of the FCA Handbook, called 'CONC'.
The only factor I will ask you to expect - is what I call 'stakeholder-led' requirement for a licence of some sort. Increasingly, the various Lenders' compliance departments are deciding that the best way to demonstrate to the Regulator that they take compliance seriously - is only to do business with FCA licenced firms. So you may not need a licence, but business circumstance dictates that you do. Further - if you do the obvious and then apply for said licence, telling the Regulator why you're applying for it - it will be Refused.
You have to have a valid basis for applying for the licence - or in other words, found where your business just nips the 'Perimeter'. A good consultant would assist with analysing your business as against that Perimeter, and point out where and how there is a breach or risk of a breach - leading to the need for a licence.
Arif
Edited by Arif110 on Thursday 18th September 23:45
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