Exemptions and exclusions from authorisation

There are some circumstances where firms don’t need to be authorised by us. Find out if you qualify.

Exemptions

Some firms engaged in regulated activities don’t, depending on the circumstances, need to be authorised by us. These can include:

professional firms – such as solicitors, accountants or actuaries
firms offering payment by instalments
appointed representatives[1] working on behalf of firms that are already authorised

Exclusions

There are some circumstances where activities that would normally be regulated are unregulated. These can include certain overseas activities and those where potential customers are introduced to firms.

Check and check again

The exemptions and exclusions mentioned above are not exhaustive. For full details, refer to PERG 2.7 and 2.8[2] in our Handbook.

You can also see a list of regulated activities and find out about debt counselling exclusions[3].

If you're still not sure whether you need to be authorised, please contact us[4].

You need to be absolutely sure you qualify for an exemption or exclusion from being authorised. If you get it wrong, you could end up committing a criminal offence.

Instalment credit firms

If you're a consumer credit firm that only offers instalment credit agreements, you may be exempt from our authorisation – check the criteria below.

Criteria to be exempt from our authorisation

To be exempt, your instalment credit agreement must be:

repayable by no more than 12 instalments within no more than 12 months
a borrower-lender-supplier agreement (that’s to say, it must finance the acquisition of specific goods or services)
for a fixed amount

And must not:

be an agreement financing the buying of land
be a conditional sale or HP agreement
be a pawn agreement
contain charges or interest (for example, there can’t be an admin fee)

If you offer any additional financial services or arrangements that qualify as regulated activities, then you will need to be authorised by us.

It’s your responsibility to figure out whether your instalment credit agreement is exempt from our authorisation. If necessary, seek independent legal advice.

Local authorities

The following local authorities qualify for exemptions:

county councils
district councils
unitary councils
London borough councils
the Greater London Authority
the Common Council of the City of London
the Council of the Isles of Scilly
in Scotland, a local authority within the meaning of the Local Government (Scotland) Act 1973
in Northern Ireland, a district council within the meaning of the Local Government Act (Northern Ireland) 1972

If you’re one of the above, you can carry on certain regulated consumer activities and be exempt from our authorisation. Below are some examples.

Making loans

Local authorities don't need authorisation to make loans that are:

without fees or charges
of less than £160 (Euro200)
over £60,260 (Euro75,000)
for hiring/leases where there is no obligation to purchase
to specific persons under a statutory provision at better-than-market rates

Consumer credit agreements

Consumer credit agreements are exempt if they are:

pawn agreements
overdrafts repayable within 1 month
credit repayable within 3 months where insignificant charges are payable
employer loans that are free of interest or at better-than-market rates
settlement agreements following court action
deferment of existing debts, without charge

When to apply for authorisation as a local authority

You'll need to apply if you're a:

local authority carrying out non-exempt regulated activities
firm owned by a local authority carrying on consumer credit activities – you'll either need full authorisation or interim permission

Find out how to apply[5] for authorisation.

15/10/2025 : Technical amend: accessibility

30/11/2023 : Link changed Reordering the pages in this section

25/05/2023 : Information changed page updated as part of website refresh

First published: 08/08/2017 Last updated: 15/10/2025 See all updates

Exemptions and exclusions from authorisation

Exemptions

Exclusions

Check and check again

Instalment credit firms

Criteria to be exempt from our authorisation

Local authorities

Making loans

Consumer credit agreements

When to apply for authorisation as a local authority

On this page

How to apply for authorisation or registration[5]