Here we clear up some typical misconceptions about the way we authorise Community Development Finance Institutions (CDFIs).
✗ Because a CDFI offers affordable loans to small firms and individuals in under-privileged parts of the country, it doesn’t need to contact the FCA.
✓ CDFIs either need to be authorised by, or registered with, the FCA. The exact relationship you have with us will depend on what you do. It is important that you contact the FCA to either become registered or to apply for authorisation.
Registration involves giving us less information about your business than authorisation does.
✗ If a CDFI complies with a code of conduct, it doesn’t need to be registered with the FCA.
✓ Compliance with a code of conduct doesn’t exempt you from the need to register with us.