Limited Permission FCA Authorisation for Motor Dealers key checks
The regulated activity
Whether the dealership is simply selling vehicles or also introducing customers to lenders, brokers or motor finance products.
The evidence trail
How the customer journey, website wording, application documents and FCA permissions should tell the same story.
The practical next step
What to prepare before an FCA application, FCA licence discussion or post-approval compliance review.
What Limited Permission means
Limited Permission is a category of FCA authorisation for certain firms carrying out specified consumer credit activities.
It is still authorisation and still requires a clear application.
In practice, Limited Permission does not mean the dealership can ignore the detail. It means the application should explain a narrower type of consumer credit activity in a clear, proportionate way.
Motor trade example
A car dealer may describe itself as a vehicle retailer, but the finance conversation can still involve regulated activity. The customer journey, lender relationship and website wording need to be checked together.
Why it can apply to motor dealers
It can apply where finance introductions support the main activity of selling vehicles.
The dealership must still explain how the finance journey works and how customers are treated.
Motor dealers commonly look at Limited Permission because finance introductions usually support the vehicle sale rather than being the main product sold by the business.
Credit broking and motor finance introductions
Many Limited Permission applications for dealers involve credit broking permission.
This is because the dealer may introduce customers to lenders or brokers during the vehicle purchase.
Why Limited Permission still requires proper preparation
Limited Permission should not be treated as informal or automatic.
The FCA may still expect proportionate systems, documents and a clear understanding of the regulated activity.
The FCA still needs to understand how customers are introduced to finance, how staff explain the dealership’s role and how complaints or vulnerable customer issues are handled.
A dealer should be ready to explain who speaks to the customer about finance, where disclosure wording is given, what happens if a proposal is declined and how the business monitors that process.
Even where the permission is limited, the FCA may still expect a coherent Regulatory Business Plan, compliance procedures, complaints procedure, vulnerable customer policy and customer journey explanation.
Information the FCA may expect
- Business model and ownership details
- Customer journey and sales process
- Finance introduction process
- Compliance procedures
- Complaints handling approach
- Website and disclosure wording
Common application weaknesses
Applications can be weakened by vague customer journeys, inconsistent documents or website wording that does not match the application.
A clear and joined-up application is easier to understand.
A common misunderstanding is that Limited Permission is a quick formality. It still needs to match the dealership’s real activity, website wording and lender or broker arrangements.
Weak application example
An application can look weak if the business plan says finance is occasional, the website heavily promotes finance, and the customer journey does not explain who gives disclosures.
What happens after authorisation
After authorisation, firms need to maintain records, monitor compliance and keep information current.
For application help, see our Limited Permission FCA application support.
Common misunderstandings about Limited Permission
It is not automatic approval
The FCA still decides whether authorisation should be granted. The application needs to explain the dealership, the finance activity and the controls in place.
It is not a substitute for clear documents
A short or unclear application can still raise questions. The documents should show how credit broking fits into the vehicle sales journey.
It does not end after approval
Once authorised, the dealer still needs to keep policies, complaints records, website wording and compliance monitoring under review.
It still needs to match the website
If the website describes finance in a way that goes beyond the application, the inconsistency can create confusion.
Frequently Asked Questions
What is Limited Permission?
Limited Permission is a form of FCA authorisation for certain firms where consumer credit activity is limited or secondary to the main business.
Can motor dealers apply for Limited Permission?
Many motor dealers may apply for Limited Permission where finance introductions are secondary to vehicle sales.
Does Limited Permission mean light-touch compliance?
No. It may be proportionate, but firms still need appropriate systems, documents and ongoing compliance arrangements.
What documents may be needed?
Documents may include a business plan, compliance procedures, monitoring arrangements, complaints procedure and customer journey information.
Can 009 Compliance help?
Yes. 009 Compliance can help motor dealers prepare Limited Permission FCA applications.
Official FCA resources
These official FCA pages may help you check the current position before making decisions or submitting information.
- FCA authorisation for official information about applying to be authorised.
- FCA Connect for applications, notifications and related FCA interactions.
- FCA Register for checking firm status, permissions and appointed representative information.
