All firms that carry out lending activities need to be authorised by the FCA. If you want to become a finance lender, the FCA will ask you to provide the following documentation:

• • A regulatory business plan.

• • A risk management strategy.

• • Compliance procedures, e.g. sales process, complaints, data protection, rule breaches, forbearance, vulnerable customers

• • Evidence of how the firm will ensure it is treating customers fairly

• • Evidence that the firm has systems in place to combat financial crime including money laundering

• • Marketing strategies to be used, and how clients will be sourced

• • Details of the firm’s organisational structure.

• • Projected financial statements.

• • Details of any previous convictions, disciplinary action, or insolvency events.

• • Additional information along the application approval process including bespoke documents.

• • Details of affordability assessments the firm will carry out.

In addition, individual authorisation for key personnel, e.g. directors, chief executives, heads of compliance, and anti-money laundering officers is also required. These individuals will be subject to a series of assessments regarding honesty and integrity.