What to expect from preparation to the FCA decision
This guide explains the practical application journey for a business considering FCA limited-permission consumer credit authorisation. It focuses on what happens after you decide to explore an application: what must be clear, what information you will need, what an application-preparation service can do and what remains your responsibility.
Who this guide is for
It is intended mainly for retailers and service businesses whose consumer credit activity supports the sale of their own goods or services. Examples can include motor dealers, home-improvement businesses, retailers, dentists, veterinary practices, jewellers and equipment suppliers.
Being in one of these sectors does not automatically make limited permission appropriate. The correct regulatory position depends on the activities carried on and the circumstances in which they are carried on.
The journey in six stages
1 Initial suitability check
Consider whether the proposed model appears suitable for the limited-permission service.
2 Information gathering
Provide the facts, evidence and commercial arrangements needed to describe the business accurately.
3 Application preparation
Prepare the agreed application documents and basic policy bundle around the proposed model.
4 Review and FCA Connect
Check consistency, approve the documents and complete the submission process on FCA Connect.
5 FCA assessment
The FCA reviews the application and may request further information or clarification.
6 FCA decision
The FCA decides whether to authorise the firm and, if so, with which permissions and requirements.
What needs to be reasonably clear
The business does not need to have every document written before preparation starts. However, the proposed model must be sufficiently developed for the application to describe a real business rather than a set of assumptions.
The proposed activities
You should be able to explain what the business sells, how finance supports that sale and what employees or systems will do. This includes whether the firm introduces customers to a third-party provider, offers its own credit, hires goods or becomes involved in replacing existing finance.
The customer journey
The journey should cover advertising, the first finance conversation, information collected from the customer, introductions or applications, disclosures, the provider’s decision and relevant after-sales contact. The written application must match the journey that will operate in practice.
Finance providers and commercial arrangements
Identify the proposed lenders, brokers or platforms, the types of agreement that may be offered, any commission or customer fees and the main contractual arrangements. If an arrangement is not final, it should be described accurately as proposed rather than confirmed.
People and business structure
Ownership, controllers, senior decision-makers and responsibility for compliance should be understood. The people responsible for the business should be able to explain the model, its risks and the controls described in the application.
Evidence supplied by the applicant
Depending on the firm and the FCA’s requirements, the applicant may need to provide:
- company, ownership, controller and relevant-individual information;
- CVs and DBS checks where required;
- lender, broker, platform, outsourcing or introducer agreements;
- financial information, forecasts and supporting assumptions; and
- website content, customer communications and other evidence requested for the application.
The application-preparation service can organise and reflect this information, but it cannot create underlying evidence or confirm facts on the applicant’s behalf.
How the application is prepared
Once the required information has been received, the application documents can be prepared around the firm’s actual business model, customer journey, governance and controls.
Basic application document bundle
The Application Preparation package includes the following agreed documents and support:
| ✓ Regulatory business plan and business model description | ✓ Permission and activity mapping |
| ✓ End-to-end customer journey | ✓ Compliance Manual |
| ✓ Compliance monitoring programme | ✓ Consumer Duty Policy |
| ✓ Complaints-handling procedure | ✓ Vulnerable customers policy |
| ✓ FCA Connect submission guidance | ✓ Pre-submission quality review |
The exact document list is confirmed before payment. This is a basic policy bundle for the agreed application scope. The FCA may request additional policies, forms, evidence or information during its assessment.
The five-working-day preparation target
The normal preparation target begins once all required information has been received. It is a target for preparing the agreed application material, not a promise that the business will be authorised within five working days.
Review and FCA Connect
Before submission, the applicant reviews the documents, confirms the facts and approves the final wording. The pre-submission review checks the agreed material for visible gaps and inconsistencies. FCA Connect guidance is provided, but the applicant controls the application, makes the required declarations, pays the FCA fee and submits the application.
What happens after submission
Submission starts the FCA’s assessment. It does not mean the application has been approved and does not, by itself, allow the firm to begin regulated activity.
Assessment timescales
The FCA states that it will usually assess a complete application under the Financial Services and Markets Act 2000 within six months. An incomplete application may take up to 12 months. These are regulatory assessment periods, not guaranteed decision dates.
Questions and further information
The FCA will usually ask questions or request a call. It may request explanations, supporting evidence, additional policies, updated financial information or changes to the proposed arrangements. The nature and extent of the questions depend on the application and the concerns identified during the assessment.
The applicant remains responsible
The firm remains responsible for the accuracy of the application and for responding to the FCA after submission. The Application Preparation package ends with FCA Connect guidance and the pre-submission review. It does not include handling post-submission FCA questions or representing the applicant during the assessment.
Possible outcomes
The FCA may:
- authorise the firm with the permissions and requirements it considers appropriate;
- seek changes, restrictions or further evidence before reaching a decision;
- invite the applicant to withdraw if material concerns cannot be resolved; or
- propose to refuse or refuse the application where the relevant requirements are not met.
Approval cannot be guaranteed. An applicant should also plan on the basis that it cannot carry on regulated consumer credit activity until authorisation has been granted, unless a lawful exemption or another permitted basis applies.
Costs and common causes of delay
Professional fee and FCA fee
The Application Preparation package is £1,150 plus VAT. The FCA application fee is paid separately and directly to the FCA. Limited consumer credit permission currently falls within the FCA’s Category 2 application fee, which is £560. FCA fees can change and should be checked immediately before submission.
Common reasons for delay
- The customer journey or finance-provider arrangements are not sufficiently developed.
- Ownership, responsible-person or controller information is incomplete.
- Commercial agreements, financial information or supporting evidence is missing.
- FCA Connect answers conflict with the business plan, policies or website.
- The responsible people cannot explain the model, risks and controls.
How the Application Preparation service helps
We carry out an initial suitability check before payment, prepare the agreed limited-permission application documents and basic policy bundle, provide FCA Connect guidance and complete a pre-submission quality review. The documents are prepared using the information supplied about your business and proposed activities.
The service does not determine the FCA’s decision, provide a guarantee of authorisation or include responses to post-submission FCA questions.
Next step
Ready to prepare your application? View the Application Preparation package
Not sure limited permission applies? Check your requirements
Important information
This guide provides general information only and does not constitute legal or regulatory advice. Whether authorisation is required, which permissions apply and what supporting material is needed depend on the firm’s actual activities and circumstances. FCA rules, forms, fees and expectations can change. FCA authorisation cannot be guaranteed.
Information checked against FCA sources in October 2026.