Apply to become a debt firm

You'll need to demonstrate that your firm can use the permissions you're applying for within 12 months of you getting authorised.

This is so that consumers don't get misled. It also saves us having to cancel any of your unused permissions.

In your RBP, make sure you explain/provide:

• the aims and objectives of your firm and why you're applying for authorisation
• the full range of activities your firm will undertake, including activities that we don't regulate
• why the permissions applied for are needed for your business
• what types of debt solutions will your firm provide advice on and offer
• the third-party debt solution providers your firm will pass consumers onto and whether your firm will be receiving a referral commission in return
• your firm's target market, including the research that's been conducted to show that the product or service your firm offers meets the needs and characteristics of the target market
• how your firm will obtain customers (lead generators, financial promotions, website, etc)
• how the business activities are funded and how revenue is generated
• an organisation chart that shows your key staff and roles 
• the experience of senior managers at your firm, explaining why you believe they have the necessary skills, experience and regulatory knowledge to lead an authorised firm
• your debt advice process – ie initial engagement, assessment of circumstances, determination of suitable solutions and exit points
  • it should also be clear where consumers will be referred to if they aren't suitable for a debt solution offered by the firm, or if the recommended debt solution isn't provided by the firm
• how your firm will conduct assessments of customers' financial circumstances and their suitability for appropriate debt solutions
• how your firm ensures that all advice given and actions taken are in the best interests of the customer
• customer communications (eg customer communication templates such as call scripts or guides that demonstrate how customers are kept informed), including how communications are tailored to the different needs of customers, eg those in vulnerable circumstances
• whether your firm is to be a Section 21 financial promotions approver[10]

In your RBP, make sure you explain/provide:

• the aims and objectives of your firm and why you're applying for authorisation
• the full range of activities your firm will undertake, including activities that we don't regulate
• why the permissions applied for are needed for your business
• what types of debt solutions your firm will provide advice on and offer
• which third-party debt solution providers your firm will pass consumers onto and whether your firm will be receiving a referral commission in return
• whether your firm will only provide budgeting advice
• your firm's target market, including the research that's been conducted to show that the product or service your firm offers meets the needs and characteristics of the target market
• how your firm will obtain customers (lead generators, financial promotions, website, etc)
• how the business activities are funded
• whether fees are going to be charged to customers (if so, list these), and provide information on why despite charging fees, you still consider your firm to be a not-for-profit organisation
• an organisation chart that shows your key staff and roles
• your debt advice process – ie initial engagement, assessment of circumstances, determination of suitable solutions and exit points
  • it should also be clear where consumers will be referred to if they aren't suitable for a debt solution offered by the firm, of if the recommended debt solution isn't provided by the firm
• how your firm will conduct assessments of customers' financial circumstances and their suitability for appropriate debt solutions
• how your firm ensures that all advice given and actions taken are in the best interests of the customer
• customer communications (eg customer communication templates such as call scripts or guides that demonstrate how customers are kept informed), including how communications are tailored to the different needs of customers, eg those in vulnerable circumstances
• whether your firm is to be a Section 21 financial promotions approver[12]

In your RBP, make sure you explain/provide:

• the aims and objectives of your firm and why you're applying for authorisation
• the full range of activities your firm will undertake, including activities that we don't regulate
• why the permissions applied for are needed for your business
• who you'll be providing services for, how the business activities are funded, how revenue is generated and how the firm is remunerated
• the number of customer accounts your firm intends to service upon authorisation, and 12 months after authorisation 
• your firm's target market and evidence the research that's been conducted to show the product or service your firm offers meets the needs and characteristics of the target market
• projections of volumes of customers to be serviced, both within and, where applicable, outside the FCA perimeter
• an organisation chart that shows your key staff, roles and where they're located
• the experience of senior managers at your firm, explaining why you believe they have the necessary skills, experience and regulatory knowledge to lead an authorised firm
• how customers are onboarded (ie from client-to-firm systems, and documents of operational controls relating to data accuracy, data cleansing, account sampling and reconciliation)
• the customer journey – from acquisition/on-boarding to customer touchpoints, decisioning and exit points, as well as your firm's customer contact strategy
• customer communications (eg customer communication templates such as call scripts or guides that demonstrate how customers are kept informed), including how communications are tailored to the different needs of customers, eg those in vulnerable circumstances
• your conduct risk framework, including quality assurance monitoring
• whether your firm is to be a Section 21 financial promotions approver[13]

In your RBP, make sure you explain/provide:

• the aims and objectives of your firm and why you're applying for authorisation
• the full range of activities your firm will undertake, including activities that we don't regulate
• why the permissions applied for are needed for your business
• who you'll be providing services for, how the business activities are funded, how revenue is generated and how the firm is remunerated
• your firm's target market and evidence the research that's been conducted to show the product or service your firm offers meets the needs and characteristics of the target market
• projections of volumes of customers to be serviced, both within and, where applicable, outside the FCA perimeter
• an organisation chart that shows your key staff, roles and where they're located
• the experience of senior managers at your firm, explaining why you believe they have the necessary skills, experience and regulatory knowledge to lead an authorised firm
• how customers are onboarded (ie from client-to-firm systems, and documents of operational controls relating to data accuracy, data cleansing, account sampling and reconciliation)
• the customer journey, from acquisition/on-boarding, customer touchpoints, customer decisioning, customer exit points and document your firms customer contact strategy
• customer communications (eg customer communication templates such as call scripts or guides that demonstrate how customers are kept informed), including how communications are tailored to the different needs of customers, eg those in vulnerable circumstances
• your conduct risk framework, including quality assurance monitoring
• if your firm will use external agents, eg to collect, enforce or trace and connect
  • where this is the case explain, who you'll contract for these services
• if your firm will use continuous payment authorities to collect payments and, if so, how it will comply with our rules
• whether your firm is to be a Section 21 financial promotions approver[14]

In your financial forecasts:

• you must provide at least 3 years of forecasts, but you may wish to provide up to 5 years to support your application
• in your summary you should include a set of the 3 financial statements (balance sheet, profit and loss, cashflow) under a stressed set of assumptions

In your RBP, make sure you explain/provide:

• the aims and objectives of your firm and why you're applying for authorisation
• the full range of activities your firm will undertake, including activities that we don't regulate
• why the permissions applied for are needed for your business
• who you will be providing services for, how the business activities are funded, how revenue is generated and how the firm is remunerated
• your firm's target market and evidence the research that's been conducted to show the product or service your firm offers meets the needs and characteristics of the target market
• what types of debts you are purchasing and from which creditors
• the number of customer accounts your firm intends to have on its books on authorisation and 12 months after authorisation
• what due diligence has been completed on intended debt sellers and how you have satisfied yourself on the appropriateness of the transfer
• how customer liability will be managed between your firm and the creditors
• which Debt Collection Agencies / Legal Recovery Firms will be used for debt collection or debt recovery
• projections of volumes if customers to be serviced, both within and, where applicable, outside the FCA perimeter
• an organisation chart that shows your key staff, roles and where they're located
• the experience of senior managers at your firm, explaining why you believe they have the necessary skills, experience and regulatory knowledge to lead an authorised firm
• how customers are onboarded (i.e. from client to Firm systems and document operational controls relating to data accuracy, data cleansing, account sampling and reconciliation)
• the customer journey – from acquisition/on-boarding to customer touchpoints, decisioning and exit points, as well as your firm's customer contact strategy
• customer communications (eg customer communication templates such as call scripts or guides that demonstrate how customers are kept informed), including how communications are tailored to the different needs of customers, eg those in vulnerable circumstances
• your conduct risk framework, including quality assurance monitoring
• if your firm will use external agents, eg to collect, enforce or trace and connect
  • where this is the case, explain who you'll contract for these services
• if your firm will use continuous payment authorities to collect payments and, if so, how it will comply with our rules
• whether your firm is to be a Section 21 financial promotions approver[15]