How to become a finance lender

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.