Applying for a permission

Mortgage Credit Intermediary

About

The purpose of this page is to make sure that the application process is fully understood.

This section sets out:

  • What a Mortgage Credit Intermediary is and what this regulated activity would allow you to do
  • Authorisation Process
  • Capital Requirements
  • Additional Information

What is a Mortgage Credit Intermediary and what would this regulated activity allow you to do?

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 authorisation and regulation of a Mortgage Credit Intermediary falls within the scope of the Financial Services Act 2019 and the Mortgage Credit Directive 2014/17/EU. This regulated activity allows a Mortgage Credit Intermediary to carry out mortgage credit intermediation activities and advisory services.

 

Application Process

Applicants should submit an application pack with all relevant documents. We will not consider an application complete if there are any outstanding documents.

The application pack must consist of:

  • Application Fee;
  • Application Form;
  • Financial Projections for the next 3 years;
    • Stress Test on Financial Projections;
    • Profit and Loss account;
    • Balance Sheet;
  • Regulated Individual Form (for each Regulated Individual);
  • Controller Form (for each Controller);
  • Business Plan;
  • Risk methodology and/or threat assessment matrix; 
  • Mapping assessment of how the application meets the relevant legislative threshold requirements (i.e. statutory/regulatory criteria for licensing under relevant Act); and
  • Any other document the applicant considers the GFSC should take into consideration as part of the application.

Please request cloud access via E-mail at authorisations@gfsc.gi  in order to submit the Application Pack. Please include the following information in the subject field: ‘Name of Regulated Firm/Applicant – Application’. Paper copies are not required unless indicated by the Authorisation team.

Please note that we accept signed signature copies sent via e-mail and electronic signatures, which must originate from the Regulated Firm /Applicant’s domain.  

 

Capital Requirements

A Mortgage Credit Intermediary is 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.

Additional Information

The business plan should 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; and
  • If the applicant forms part of a larger group, applicants should provide details 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.