Lending firms

If you're a lending firm, you have to be authorised by us. Here we explain what you need to do before applying to us for authorisation.

To become an authorised lending firm, you have to show you meet our minimum standards – known as our threshold conditions.

You also have to comply with our principles and our rules about systems and controls.

Read this page before submitting your application through our online system Connect. Please note, this guidance is not exhaustive and you may need to consider additional factors on a case-by-case basis.

What to read before applying

Start by reading Our Approach to Authorisation and our page on being ready, willing and organised. This will help you understand our expectations of applicants.

Then review the following modules in the FCA Handbook:

Limited or full permission

Depending on the regulated financial activities your firm carries out, you’ll have to apply to us for either limited or full permission. The minimum standards for limited permission and full permission applications are different.

If you require limited permission, you can register on Connect and submit a limited permission application now.

If you require full permission, see below for the main things you need to do before applying to us for authorisation. 

Preparing your application

You will need to complete:

Avoid delays to the process

Many factors could delay the application process, so here is some advice to help you ensure your application goes as quickly and smoothly as possible.

Be prepared

Make sure your application has no incomplete or missing forms. Where required, documentation should be signed, with passwords provided if files are password protected.

Ensure that the technology or systems you will be using are ready to carry out the applied-for regulated activities and that you can provide evidence of how these will operate to support your business.

We will ask you for a draft copy of the lending agreement, pre-contract information and adequate explanation documents.

You'll also need to demonstrate:

  • how you conduct affordability assessments
  • how you will deal with arrears and defaults
  • that you have draft copies of letters to be sent

If your firm is an LLP, we'll ask you for the firm's Draft Partnership Agreement.

Be clear

Your application may be delayed if you have a generic business plan and don't explain your firm's specific activities and how these align with the permissions you're applying for.

You will also need to clearly explain how and why individuals in key roles at your firm were selected, based on their qualifications or relevant experience.

Be compliant

It's important that you identify conflicts of interest and explain how you intend to manage or mitigate them.

You must be open and co-operative with us (Principle 11) and provide responses within the requested dates.

Your application must make clear what compliance arrangements will be in place to meet your firm’s ongoing regulatory obligations.

If you need more help

Please contact us on 0300 500 0597. We're open Monday, Tuesday, Wednesday and Friday 9am to 5pm, and Thursday 9.45am to 5pm.

    Page updates

    19/05/2021: Link changed IT self-assessment questionnaire

    20/07/2020: Link changed Broken links fixed