The purpose of this page is to make sure that the application process is fully understood.
This section sets out:
- What is a Mortgage Credit Intermediary?
- What would this Licence allow you to do?
- Capital requirements
- What do you need to submit?
Mortgage Credit Intermediaries
A mortgage credit intermediary is a natural or legal person who presents or offers credit agreements to consumers, assists consumers by undertaking preparatory work or other pre-contractual administration in respect of credit agreements or concludes credit agreements with consumers on behalf of the creditor.
The licencing and regulation of a Mortgage Credit Intermediary falls within the scope of the Financial Services (Investment and Fiduciary Services) Act 1989 and the Mortgage Credit Directive 2014/17/EU.
What would this Licence allow you to do?
A mortgage credit intermediary licence permits a mortgage credit intermediary to carry out mortgage credit intermediation activities and advisory services that are set out in Schedule 3 of the Financial Services (Investment and Fiduciary Services) Act 1989.
What does this Licence not cover?
Where a mortgage credit intermediary wishes to carry on any activities that are not specified in Schedule 3 of the Financial Services (Investment and Fiduciary Services) Act 1989, it will be required to apply for the relevant requisite licence. For example, if a mortgage credit intermediary wishes to carry on mortgage credit activities, it would need to also apply for a non-credit institution or credit institution licence.
A Mortgage Credit Intermediary required to hold an initial and ongoing capital of:
- Three months' worth of operating expenses or £15,000 (whichever is the higher); and
- a sum equal to any excess payable under its professional indemnity insurance.
What do you need to submit?
An application pack is required to be submitted with all the relevant documents.
An application will not be considered complete if there are any outstanding documents.
The application pack must consist of:
- Application Fee
- Application Form
- Business Plan
- Financial projections for the next 3 years including profit and loss account and balance sheet
- Individual Questionnaires (for each individual holding a notifiable position)
- Body Corporate Questionnaires (for each entity holding a notifiable position)
- Trust Questionnaire (if applicable)
- Evidence of capitalisation at the minimum regulatory requirement
- Mapping assessment of how the application meets the relevant legislative threshold requirements (i.e. statutory/regulatory criteria for licensing under relevant Act/s)
The business plan should clearly and comprehensively set out:
- How the firm proposes to conduct activities
- Whether the firm intends on offering advisor services
- How the firm will ensure that consumers are protected and their suitable needs are met
- An assessment of the firm’s main risks and how these are to be mitigated
- The resources that are to be made available and the systems that the applicant intends to employ
- How clients will be sourced
- How records will be maintained
- How, and by whom, any significant decisions will be made
- Compliance with AML requirements (if applicable)
- What reporting lines the firm will establish
- Business Continuity Plan
- If the applicant forms part of a larger group, details should be provided of the activities of the group and a description of its structure
Applicants should ensure that the business plan is coherent with the firm's risk appetite and capacity.
Should you get an error when opening any of the forms, please check the FAQ tab for guidance on how to override this.
Documents referred to in the application form must be clearly referenced to help us process the application swiftly.
RGP Vetting Form
Please note that an 'Individual Questionnaire' or a 'Notifiable Document' MUST be accompanied by a Royal Gibraltar Police vetting application form in accordance with Section 30C of the Proceeds of Crime Act 2015.
(i) The enquiry form must be completed by the applicant in full with BLUE INK on an original form (scanned copies will not be accepted by the RGP).
(ii) £10 will be required to be submitted with the form. This can be paid in cash or you may pay by cheque. If you are paying by cheque please make this payable to the Government General Account.
||Body Corporate Questionnaire
Where a trust is proposed as part of the shareholding structure of an applicant, the GFSC will need sight of a comprehensive explanation setting out the rationale for the use of such a vehicle within the structure.
Furthermore, the following is required to be submitted together with the Questionnaire
- Copy of the trust deed
- A written undertaking from the respective trustees to the effect that:
- the provisions of the trust(s) in respect of beneficiaries, trustee(s) and terms of settlement are as contained in the relevant deed(s) dated [xxx],
- the resignation of any trustee and, where appropriate, protector will be notified to the Commission forthwith,
- no other trustee(s) or any additional or different protector(s) will be appointed, without the prior approval in writing of the Commission,
- any proposed changes to the beneficiaries must be notified in writing to the Commission,
- any proposed distribution or transfer for value or otherwise of any of the trust assets related to the applicant firm must receive the prior approval in writing of the Commission.
- Confirmation from the trustee(s) that they understand that failure to adhere to their undertaking may result in regulatory action against the applicant/regulated firm.
In addition to the Trust Questionnaire and the above listed information, the Applicant is also required to submit Individual Questionnaires for the settlor(s) and any named beneficiaries. This will not apply in cases where the beneficiary is a minor. In these cases, details of the individual will suffice i.e. name, DOB, address, nationality & passport number. When the trust is for example a discretionary family trust where not all beneficiaries are named (i.e. refers to spouse and children/issue of Mr X but does not actually name these individuals) a copy of the ‘letter of wishes’ of the Settlor, if any, will also be required.
In principle, the GFSC does not favour the use of nominee shareholdings for the purposes of holding shares, directly or indirectly, in a regulated firm. The Commission will therefore require that the applicant submit a paper setting out the rationale for the use of these structures in each instance where this is being proposed. This should include comprehensive details as to why it is necessary to hold the shares in this way.
The application fee must accompany your application. Please note, if you are applying for more than one licence, aggregate fees will apply.
||Nature of Application
|Mortgage Credit Intermediary
||Application to be licensed
|Mortgage Credit Intermediary
||Application for registration of an appointed representative
The annual fee is not payable until your application is approved. For details of these please refer to the current Fee Regulations.
Under the GFSC’s annual fee methodology you pay a minimum base fee which is dependent on the set fee block assigned to your regulated sector. In addition to the base fee, you are also required to pay an additional amount that will be calculated based upon a range of factors including activity and income. To calculate the additional part of your annual fee the GFSC will need to review audited financial data and/or supervisory returns. At licensing stage, you will not yet have the requisite audited financial data or supervisory returns available for the GFSC to calculate the additional part of your annual fee. On this basis, the GFSC will only require you to pay the base fee at this stage and, towards the end of the GFSC’s financial year end (31 March), you will then be invoiced for the remainder of the annual fee which will be calculated based upon the financial data and/or supervisory returns provided by you up until that date.
Details on the payment methods can be requested from the Accounts team.
The current service level standards for Firms are:
- To provide initial feedback to an application within 5 weeks of a complete application being received.
- Once all of the information has been received from an applicant and the application is therefore considered to be complete, we aim to provide an in principle decision within 4 weeks.
The current service level standards for Individual authorisations are:
- To provide initial feedback to an application within 1 weeks of a complete application being received.
- Once all of the information has been received from an applicant and the application is therefore considered to be complete, we aim to provide an in principle decision within 2 weeks.
Please be advised that the above service level standards refer to the period of time in which the GFSC holds applications for consideration. Where we require further information or documents from an applicant the service level standards will be suspended until we receive the requested information. The period of time an application is pending because of factors outside the control of the GFSC will not be accounted for under the service level standards.
Please note that should we be unlikely to meet our SLS’s, we will advise you as soon as possible.