When your ‘landing slot’ is due, should you apply for limited or full permission from the FCA?
One question we’re frequently asked by retailers is, which type of permission do I need to apply for, limited or full? It’s really important to get your application right, because if you apply for the wrong permission then it will delay getting authorised by the FCA.
Limited permission – this covers credit broking activities where the sale of goods or non-financial services is the main business, and broking is a secondary activity to help finance the purchase of those goods or services. Discussing the price of products or services with customers, and the credit broking activities are likely to take place in a showroom or retail offices.
Full permission – this covers credit broking activities where the sale of goods or services takes place “off trade” in the customer’s home (what is known as ‘domestic residence supplier’).
A domestic residence supplier is defined as, “a supplier who sells goods or supplies services to customers who are individuals while physically present in the dwelling of the customer or in consequence of an agreement concluded whilst the supplier was physically present in the dwelling of the customer (though a supplier who does so on an occasional basis is not to be treated as a ‘domestic premises supplier’)”.
For the FCA, limited permission is an indication that a firm’s business activities present less risk to customers, which is why the application process is less rigorous. Full permission firms are subjected to more checks during the application process and need to meet more conditions once authorised.
Whichever permission your business needs, try to prepare your application well in advance as it will take some time to gather and prepare the information. The FCA aim to assess and make a decision on completed applications within six months. If your application is incomplete, or you select the wrong permission category, then you may find it takes up to 12 months
If you have any queries about completing your FCA application please call the CCS team 0845 120 6666