How long does the FCA take to decide an application?

The FCA has up to 6 months to determine a complete application, and up to 12 months for an incomplete one. Straightforward limited permission cases are often decided faster, but the statutory clock only starts on submission.

What does authorisation cost each year after approval?

Authorised firms pay an annual periodic fee to the FCA; the smallest limited permission consumer credit firms pay the minimum for their fee block, typically a few hundred pounds a year. A £250 administrative fee applies to late regulatory returns.

When did buy now, pay later become regulated?

From 15 July 2026, interest-free credit repayable in 12 or fewer instalments within 12 months, financing third-party goods or services, became regulated Deferred Payment Credit under the FCA's final rules (PS26/1, published 11 February 2026). The lender needs authorisation or temporary permission; the TPR notification window closed on 1 July 2026.

FCA Consumer Credit Authorisation: Key Facts (2026)

Q: Do merchants need a licence to offer BNPL at the point of sale?

Generally no. Merchants who introduce customers to regulated Deferred Payment Credit remain exempt from needing their own credit broking licence for that activity — including domestic-premises sellers. Finance beyond 12 months or 12 instalments, or carrying interest or charges, follows the ordinary rules and usually requires authorisation.

A one-page reference for the numbers that matter in UK consumer credit authorisation — application fees, decision timelines, ongoing costs, reporting deadlines and the 2026 BNPL dates. Every figure below is checked against the FCA's published sources. Journalists, trade bodies and publishers are welcome to cite this page with a link.

Application fees

The FCA's application fee for limited permission consumer credit authorisation is £550 (pricing Category 2). Full permission applications start at £1,120 (Category 3), rising with complexity. Fees are paid directly to the FCA on application and are not refundable if the application is withdrawn or refused. Figures should always be confirmed against the FCA's live fees page before applying.

Decision timelines

The FCA has a statutory deadline of up to 6 months to determine a complete application — and up to 12 months for one that arrives incomplete. In practice, straightforward limited permission cases are often decided faster, but the clock only starts once the application is submitted, and every request for missing information adds time. Preparing the application itself takes as long as you allow it: done professionally, a complete document pack can be ready in 3 working days.

Ongoing costs after authorisation

Authorised firms pay an annual periodic fee to the FCA (consumer credit firms sit in the CC fee blocks; the smallest limited permission firms pay the minimum, typically a few hundred pounds a year). Late submission of a regulatory return carries a £250 administrative fee. Full breakdown in our cost guide.

Reporting deadlines

Limited permission consumer credit firms report annually to the FCA through RegData (the CCR007 return). A newer return, CCR009, applies to relevant ancillary credit firms — introduced on 7 May 2025, with the first reporting cycle due by 28 April 2026. Deadlines are firm-specific; they appear in the firm's RegData schedule once authorised. More in our guide to ongoing obligations.

The responsible person: SMF29

Limited permission firms appoint one person to the SMF29 limited scope function under the Senior Managers regime — one holder per firm, not every director. The individual passes a fit-and-proper assessment covering honesty, competence and financial soundness. Sole traders with no employees are generally not required to appoint anyone to the function. Details in our SMF29 guide.

The interest-free exemption, precisely

Credit is likely exempt from regulation only where all of the following hold: it is interest-free; it carries no other charges of any kind; it is repaid within 12 months; in no more than 12 instalments; and the exemption protects the lender — a business introducing customers to a third-party lender is credit broking, which is regulated regardless of the interest rate. The full rule, with examples: can you offer 0% finance without authorisation?

BNPL / Deferred Payment Credit: the 2026 dates

The FCA's final rules (PS26/1) were published on 11 February 2026. The Temporary Permissions Regime notification window ran 15 May to 1 July 2026 (fee £280) and is now closed. From regulation day, 15 July 2026, interest-free credit repayable in 12 or fewer instalments within 12 months, financing third-party goods or services, is a regulated agreement: the lender requires authorisation or temporary permission. Merchants who introduce customers to such credit remain exempt from needing their own broking licence for that activity — including domestic-premises (in-home) sellers, a reversal of the original consultation position. Finance outside that definition — longer terms, interest, or charges — follows the ordinary rules. Sector detail: the July 2026 BNPL changes for merchants.

Citing this page

These figures are checked against the FCA's published sources and this page is kept current — last verified 11 July 2026. Journalists, trade associations and publishers are welcome to cite or reproduce individual figures with attribution and a link to this page. For anything mission-critical, verify against the FCA's own pages, which remain the authoritative source.

This page is general information, not legal or regulatory advice. CreditLicence is a document preparation service and is not affiliated with, endorsed by, or acting on behalf of the Financial Conduct Authority. FCA fees and rules change; the FCA's own website is the authoritative source.

FCA consumer credit authorisation: key facts and figures (2026)