Limited or Full Permission FCA Consumer Credit Authorisation?

If you’re applying for FCA consumer credit authorisation, one of the first decisions you’ll face is whether to apply for Limited Permission or Full Permission FCA Authorisation. Making the right choice is crucial, getting it wrong could lead to delays, higher costs, and unnecessary compliance burdens. 

Here, we break it down so you can apply with confidence.

What Are FCA Consumer Credit Permissions?

If your business is involved in consumer credit, whether you’re offering finance, introducing customers to lenders, or providing debt-related services, you need FCA authorisation. The level of permission you need depends on how central credit activities are to your business.

This table can be taken as a general example. Your permissions will depend on your exact activities, which we can discuss with a free consultation. 

Do You Need Limited Permission?

If your main business is selling goods or services and you simply help customers access finance, Limited Permission is likely the right fit. Examples include:

• Car dealerships offering finance options through third-party lenders or referring to other credit brokers..
• Consumer hire firms renting or leasing goods to customers (e.g., equipment hire).
• Limited Permission lenders offering interest-free instalment payment plans (e.g., gyms or golf clubs allowing deferred membership fees).

What FCA Regulated Activities Fall Under Limited Permission?

If you apply for Limited Permission, your authorisation may cover regulated activities activities such as:

• Credit broking: as a secondary activity to selling goods/services. If you are a car dealer, along with credit broking, there is limited permission for debt adjusting and debt counselling. 
• Consumer hire agreements: where you own goods and rent, hire or lease to consumers. 
• Limited Credit Lending: Interest-free lending where finance supports the purchase of goods/services excluding Hire Purchase or Conditional Sale Agreement. 
• Not for Profit: Debt advice,  debt counselling or Credit information services on a not-for-profit basis. 
• Credit Information Services: This is when a firm provides information or advice about credit, but only in connection with the activities listed above.

💡 Key Insight: Applying for Limited Permission is generally faster than Full Permission, but it doesn’t mean lighter compliance. In practice, the FCA application stage garners a little less scrutiny, generally providing a faster approval timeframe. You’ll still need policies, procedures, and a business plan ready for FCA scrutiny.

When Do You Need Full Permission?

If your credit related services are a primary part of your business, you’ll need Full Permission. This applies to businesses such as:

• Consumer credit lenders (e.g., providers of personal loans, credit cards, or overdrafts).
• High-cost lenders (e.g., payday lenders, home-collected credit providers, pawnbrokers).
• Debt collection agencies
• Credit brokers helping customers obtain loans, where this is the main aspect of the business.
• Credit broking in a person’s home, also referred to by the FCA as ‘Domestic Premise Suppliers’. This is where your goods or services are offered in a customers home. Due to the higher risks associated with this activity, it falls under Full Permission FCA Authorisation.

What FCA Regulated Activities Fall Under Full Permission?

A Full Permission application may cover activities like:

• Credit broking (especially if sales take place in a customer’s home).
• Debt collection and administration.
• Commercial debt counselling and debt adjusting.
• Operating peer-to-peer lending platforms.

💡 Key Insight: Full Permission requires a more detailed application, including financial projections, governance structures, and risk management frameworks.

What does being Limited or Full Permission really mean? 

FCA Application Scrutiny And Turnaround Time: 

In practice, the key stage that being either a Limited or Full Permission firm applies, is when applying for authorisation. The application submission garners less documentation submission at the point of submission, and generally tends to have a quicker response and approval time.. 

FCA Fees: 

Limited Permission: Approximately £540, at time of writing. 

Full permission: Expect to pay between £1090 to £10,880 in FCA application fees, depending on complexity.

FCA Rules and Regulations: 

Normally, a firm must meet a set of “threshold conditions” set by the Financial Conduct Authority (FCA) to be allowed to operate. For limited permission credit firms, these conditions are adjusted:

• Effective Supervision: Some of the conditions around the nature and complexity of the products and service, do not apply to limited permission firms.
• Financial Resources: Instead of meeting a complex set of financial rules, a limited permission firm only needs to show that it has enough money to pay its debts when they come due. 
• Business Model: The usual rules that require a firm to demonstrate a robust business model (i.e., that its overall way of operating is sound) are not applied. 

However, that’s where the concessions end, and full compliance with the suite of rules and regulations are applicable according to the permissions being operated. FOr example, CONC in the FCA Handbook. 

This means having the full set of policies and procedures and ensuring consistently good outcomes for your customers. 

How We Help You Get the Right FCA Permission with Confidence

Deciphering FCA content and choosing between Limited and Full Permission can be tricky, and applying for the wrong one can delay your FCA authorisation. That’s where we come in. At Path to Compliance, we provide:

•  Expert Analysis: We assess your business model and help you determine the right permission type.
•  Application Support: We guide you through the FCA process, ensuring all documents and policies meet regulatory expectation
• Compliance Confidence: From business plans to risk management, we help you stay FCA ready, reducing the risk of delays or rejections.

Get Expert Guidance From Path to Compliance 

📞 Contact us today for expert advice on the best authorisation route for your business.

We will: 

1️⃣ Draft the application documents, using our templates. 

2️⃣  Prepare the online submission on the FCA Portal, called ‘ Connect’. 

3️⃣Stay with you until you hear a result from the FCA. We will guide you through any questions and queries the FCA asks, or requests any further documents.