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...
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