Applications for validation orders are charged in 2 stages. Find out what the costs are for each stage.
Stage 1 fees
In stage 1, we will assess if a validation order is required. If you are an FCA-regulated firm this fee is based on the number of third parties used by the applicant firm at the time of entering into the agreements. For example, how many credit brokers, or appointed representatives (ARs):
| Number of third parties used | Fee |
| 0-1 | £1,000 |
| 2-3 | £2,500 |
| 4-10 | £5,000 |
| 11+ | £7,500 |
If your firm was not FCA-authorised at the time the credit agreements were entered into and did not use any third parties, the application fee would be £1,000. This is because no third parties were used.
The stage 1 fee must be paid in full within 5 working days from the date you receive confirmation of receipt of your application. If we do not receive the stage 1 fee within this time, the application will be returned.
The stage 1 fee is non-refundable, and we do not issue an invoice for it.
If at stage 1 we determine the applicant firm does not require a validation order, the application will not proceed to stage 2.
Stage 2 fees
The time and costs involved in assessing the application at this stage depend on the size and nature of unenforceable agreements. This can vary significantly.
Stage 2 is the most complex part of the assessment and makes up most of the time we spend assessing your application. This is where we consider whether any customer harm has occurred or may occur in the future due to the loans being unenforceable.
Firms will be charged a project fee for stage 2. The fee will capture all time and costs of the stage 2 assessment by the FCA, up until a notice of determination is issued. This includes any fees and disbursements invoiced to us by external parties assisting with the stage 2 assessment.
At the start of stage 2 we will give applicant firms a non-binding estimate of what the final costs might be. We will keep firms informed of changes to the project fee costs throughout the stage 2 assessment. The hourly rates will be set according to the rate for the Special Project Fee for restructuring in FEES 3 Annex 9 (11)R[1].
Once the application is determined, we will issue an invoice for the stage 2 application fee. In some cases, we may also issue interim invoices during the assessment. Fees must be paid within 30 days of the invoice being issued.
If your firm wishes to withdraw their application, you can do so at any point. You will only be charged the costs incurred up to the point of withdrawal.
You can make payment by debit/credit card by calling our payments helpline on 020 7066 6014. The line is open 10am-4pm Monday-Friday. If you wish to discuss other payment methods, speak with your case officer.
See FEES 3 Annex 15R (5)[2] for full details of validation order application fees.
