To provide retail finance to your customers, obtaining the appropriate authorisation from the Financial Conduct Authority (FCA) is essential. This guide covers everything you need to know, including the licence requirements, application process, and other important information.
Retailers can apply for either limited or full permission, depending on their primary activity:
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Limited Permission: For businesses where credit broking is not their main activity. This is suitable for businesses that primarily provide services or sell goods and offer credit broking as an additional service, like introducing finance applications to lenders.
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Full Permission: For businesses whose main activity is credit broking, which involves higher regulatory standards and obligations.
At Buckingham Capital Consulting, we specialise in helping businesses navigate these regulatory requirements. With over 12 years of experience, our expert team provides comprehensive support to ensure a smooth and successful authorisation process.
Why leading firms choose us as their partner.
"We would like to express our sincere gratitude for the exceptional licence and compliance support provided by Buckingham Capital Consulting in obtaining our FCA Consumer Credit Licence. Their profound expertise in consumer credit regulations and compliance became clear when helping us.
With their expert help, we were able to develop good compliance and governance around our business. We are continuing to work with them for ongoing training and compliance support."
Since 2013, we've been at the forefront of assisting physical and online retailers in navigating the complex regulatory environment. Our services include licensing, compliance, and consulting, tailored specifically for the consumer credit sector across the United Kingdom and Europe. With deep knowledge of consumer credit regulations, we are well-equipped to guide businesses of all sizes through the evolving landscape, ensuring they meet all regulatory requirements and thrive in this dynamic sector.
Our services for retailers
Buckingham Capital Consulting assists retailers in securing regulatory authorisation in the UK and Europe. Our expert team provides comprehensive support in compliance, operational setup, technology solutions, and financial management, ensuring your business meets all regulatory requirements.
We guide retailers through the FCA authorisation process, ensuring compliance with all UK regulatory requirements. Our support includes application preparation, detailed documentation, and direct liaison with the FCA, providing a seamless path to obtaining your license and operating successfully.
EU Authorisation
We assist retailers in obtaining authorisation across the EU, managing the complexities of European regulations. Our services include drafting applications, providing regulatory advice, and ensuring ongoing compliance, enabling smooth market entry and operation within the European Union.
Compliance Services
We offer tailored compliance solutions for retailers, helping them adhere to all regulatory requirements. Our services encompass policy development, compliance audits, risk assessments, and ongoing advisory, ensuring operations remain compliant and reducing the risk of potential penalties.
Consumer Duty
We help retailers comply with the FCA’s Consumer Duty regulations. Our services include policy development, gap analysis, implementation of necessary changes, and staff training. We ensure your operations align with Consumer Duty requirements, promoting fair treatment of customers and enhancing overall service standards.
Financial Management
We provide comprehensive financial management services, including financial reporting, accounting, and audits. Our team ensures retailers maintain accurate records and meet all financial regulations, streamlining financial operations and enhancing transparency.
Training & Development
We offer training and development programs for retailers to ensure your team is well-versed in regulatory requirements and best practices. Our training sessions cover everything from compliance to operational efficiency, helping you stay ahead in the regulatory landscape.
Feel free to reach out if you need something more bespoke or have specific requirements that aren't listed above. We're here to help and would love to discuss how we can support you.
Why Buckingham Capital Consulting
Whether its compliance, authorisation or something else, its about being part of your journey.
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Expertise from seasoned experts
Our team of seasoned professionals brings a wealth of expertise to the table. With years of industry experience, we offer tailored solutions and are committed to supporting you through every stage of your journey.
Comprehensive Regulatory Support
We provide a comprehensive range of regulatory consulting services, including financial reporting, audit, compliance, training, and financial crime. Count on us to manage your needs with seamless support.
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Proven
Success
With extensive regulatory consulting experience, we deliver successful outcomes for our clients, from securing license authorisation to implementing robust frameworks, helping them navigate critical challenges confidently.
Our People
Our team of regulatory and compliance experts brings together diverse backgrounds in banking, consulting, legal, financial, and regulatory sectors. This collective experience provides us with a comprehensive understanding of the unique challenges our clients face. When you choose to work with us, you’ll benefit from the personalised attention of seasoned professionals, often at the director level, ensuring you have direct access to senior experts. Our team combines robust regulatory knowledge with commercial insight, delving deep into your business to tailor unique solutions specifically suited to your needs. This approach ensures we address your challenges effectively and support your success.
Recent successful work
We help KimbleTech obtain its FCA consumer credit licence to offer financial services including credit broking.
Consumer Credit
We help McMillan Cancer - one of Britain's largest charities obtain an FCA consumer credit licence to offer financial services.
Consumer Credit
We help Retail Capital Finance obtain an FCA consumer credit licence to offer credit services.
Consumer Credit
We help Impra Gas obtain an FCA consumer credit licence to offer credit services as domestic premises supplier
Consumer Credit
Guide for retailers wishing to offer customer finance
Introduction
To offer customer finance as a retailer, obtaining the appropriate authorisation from the Financial Conduct Authority (FCA) is essential. This guide covers everything you need to know, including the licence requirements, application process, and other important information.
Retailers can apply for either limited or full permission, depending on their primary activity:
-
Limited Permission: For businesses where credit broking is not their main activity. This is suitable for retailers that primarily sell goods or services and offer credit broking as an additional service, such as introducing finance applications to lenders.
-
Full Permission: For businesses whose main activity is credit broking, which involves higher regulatory standards and obligations.
At Buckingham Capital Consulting, we specialise in helping businesses navigate these regulatory requirements. With over 12 years of experience, our expert team provides comprehensive support to ensure a smooth and successful authorisation process.
Steps to obtain FCA authorisation for offering customer finance
1. Preparing your application
The first step in obtaining FCA authorisation is preparing a detailed application. This involves:
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Business plan and financial forecasts: You need to present a comprehensive business plan outlining your objectives, strategies, and financial forecasts for at least three years. This plan should demonstrate the viability and sustainability of your business.
2. Limited or full permission
Determine whether you need limited or full permission based on your activities:
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Limited Permission: For retailers where offering finance is an additional service.
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Full Permission: For retailers whose main activity involves significant finance activities or referring finance applications to lenders.
3. Application form and supporting documents
Prepare your application form along with the necessary supporting documents, including:
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Business plan
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Financial forecasts
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Policies and procedures relevant to your business model
4. Application fee
The application fee varies depending on the type of permission you apply for:
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Limited Permission: £500 to £1,000, depending on the size and complexity of your firm.
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Full Permission: £1,500 to £5,000, depending on the size and complexity of your firm.
5. Submitting your application
Submit your application through the FCA’s online system, Connect. Ensure that all necessary documentation is included to avoid delays.
6. Compliance and risk management
Develop a comprehensive compliance and risk management framework that outlines how you will adhere to FCA regulations and manage potential risks. This includes:
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Compliance monitoring: Implementing systems to regularly monitor compliance with FCA requirements.
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Training and competence: Ensuring that all staff involved in credit broking are adequately trained and competent.
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Internal controls: Establishing robust internal controls to detect and prevent non-compliance.
Key rules for retailers offering customer finance
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Transparency of fees and commissions: Clearly disclose any fees and commissions to customers.
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Advertising and financial promotions: Ensure that all advertising and promotions are clear, fair, and not misleading.
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Customer communications: All communications with customers should be transparent and provide clear information about the services offered.
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Complaints handling: Establish a process for handling customer complaints effectively and in compliance with FCA guidelines.
Ongoing compliance and support
At Buckingham Capital Consulting, we understand that obtaining authorisation is just the beginning. We offer ongoing support to ensure your business remains compliant, including comprehensive reporting, regular audits, and strategic advisory services. Our experts are always on hand to help you navigate the complexities of regulatory compliance, keeping your operations smooth and efficient.
Conclusion
Securing FCA authorisation is crucial for any retailer looking to offer customer finance in the UK or Europe. With the right preparation and guidance, this process can be straightforward and stress-free. Buckingham Capital Consulting is here to assist you every step of the way, ensuring your application is complete and compliant, and providing ongoing support to help your business thrive.
For more detailed information or tailored advice, please contact us. Our friendly and knowledgeable team is ready to help you navigate the complexities of regulatory compliance and achieve your business goals.
Download our free guide on FCA registration and authorisation and how to ensure a successful outcome with your application.
Success stories
Project: Royal College of Music
Overview
The Royal College of Music sought our assistance to secure a consumer credit licence to offer customer finance options for their tuition fees and other services. They required expert guidance to navigate the regulatory landscape and ensure compliance with all necessary requirements, enabling them to provide flexible financial solutions for their students.
Scope of our work
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Comprehensive application preparation and submission, including all necessary documentation.
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Development of compliance policies and procedures tailored to their unique needs.
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Implementation of financial management practices to support the new finance offerings.
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Staff training on consumer credit regulations and best practices.
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Ongoing advisory support to ensure continued compliance and operational efficiency.
Outcomes delivered
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Successfully secured a consumer credit licence from the FCA, allowing the Royal College of Music to offer flexible finance options.
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Implemented robust compliance policies and procedures, ensuring alignment with regulatory standards.
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Enhanced financial management practices to support the administration of customer finance.
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Trained staff to ensure thorough understanding and adherence to consumer credit regulations.
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Provided continuous support to maintain compliance and adapt to any regulatory changes.
Conclusion
Our tailored guidance enabled the Royal College of Music to secure their consumer credit licence and offer flexible finance options for their students. The value delivered included a smooth authorisation process, improved compliance measures, and enhanced financial offerings, positioning them for continued success in providing accessible education financing.
Project: MacMillan Cancer
Overview
Macmillan Cancer engaged us to help them secure a consumer credit licence to offer customer finance options for their services. They needed comprehensive support to ensure compliance with regulatory requirements, enhance their financial offerings, and support their mission of providing critical services to their clients.
Scope of our work
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Detailed project planning and development of a regulatory roadmap.
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Preparation and submission of the consumer credit licence application with all required documentation.
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Comprehensive compliance audit and gap analysis to identify areas needing improvement.
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Implementation of compliance monitoring systems and procedures.
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Continuous compliance advisory and support to ensure ongoing adherence to regulations.
Outcomes delivered
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Achieved successful consumer credit licence authorisation, enabling Macmillan Cancer to offer new finance options to their clients.
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Developed a clear regulatory roadmap, ensuring smooth and efficient compliance processes.
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Identified and addressed compliance gaps through a thorough audit, enhancing overall regulatory alignment.
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Implemented effective monitoring systems for ongoing regulatory adherence, reducing risks.
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Provided continuous support, ensuring Macmillan Cancer remains compliant and responsive to regulatory changes.
Conclusion
Our comprehensive support enabled Macmillan Cancer to secure their consumer credit licence and offer customer finance options, significantly enhancing their service offerings. The value delivered included successful authorisation, effective compliance strategies, and the ability to provide flexible financial solutions to their clients.
Project: Flippin Cars
Overview
Flippin Cars, a motor car trader, required our expertise to secure a consumer credit licence to sell cars on finance. They needed detailed guidance to navigate the regulatory process, implement robust compliance measures, and enhance their financial offerings to support their business growth.
Scope of our work
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Comprehensive application preparation and submission for the consumer credit licence.
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Development of tailored compliance policies and procedures to meet regulatory standards.
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Financial management support, including detailed financial reporting and audits.
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Integration of technology solutions for compliance and operational efficiency.
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Ongoing compliance and regulatory support to ensure sustained adherence to requirements.
Outcomes delivered
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Successfully obtained a consumer credit licence, allowing Flippin Cars to offer competitive finance options to customers.
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Established strong compliance policies and procedures, ensuring alignment with regulatory standards.
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Improved financial management practices, enhancing transparency and regulatory compliance.
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Integrated advanced technology solutions to streamline operations and support compliance.
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Provided ongoing support, maintaining regulatory compliance and operational efficiency, enabling sustained business growth.
Conclusion
Our tailored guidance enabled Flippin Cars to secure their consumer credit licence and offer car finance options, significantly boosting their market competitiveness. The value delivered included a smooth authorisation process, robust compliance and financial management practices, and the integration of technology solutions that supported their operational efficiency and growth, positioning Flippin Cars for long-term success.
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