If a firm carries on any of these activities without authorisation, then it would be committing a criminal offence. The FCA has the ability to take enforcement action against any firm and individuals which conduct regulated activity without the correct authorisation.

If you wish to conduct any of these activities then you will likely need to apply for authorisation with the FCA. This means you will need to submit an application with supporting business plan, policies, procedures, and financial statements to the FCA who will then assess whether your firm is able to meet its minimum standards (known as the threshold conditions) and comply with its principles.

Whilst not an exhaustive list, some specific areas of focus for lead generation firms to mitigate within the application are:

• Data – How is it collected, stored, and used lawfully?
• Financial Promotions, marketing, and advertising - how will the firm ensure this will be compliant in line with handbook rules which includes specific disclosures that need to be made?
• Vulnerable customers – It is likely those customers you seek out will have specific vulnerabilities so it is important to determine how will these be treated specifically to ensure they do not undergo any foreseeable harm.
• Systems and controls – What controls does the firm have in place to ensure frivolous and vexatious claims are not pursued?
• Customer outcomes – How will the firm monitor and ensure customers are receiving good outcomes as a result of the introductions the firms makes in terms of ensuring the customer is provided with the right product, that it offers good value, whether they understand what is involved in making a claim through the introduction you make and whether they receive the support they receive throughout your involvement?

If you are unsure as to whether you may require authorisation, or if you think you do but need assistance with the authorisation process, then contact us to see how we are able to help. We have over 80 years of ex-regulator experience in-house, meaning we understand the FCA's priorities when it comes to applications for authorisation. This helps to ensure that you submit a complete and accurate application to the Regulator, no matter the size and sector of their firm, the first time. As one of our core service offerings, FCA applications are something we take pride in doing well.

Nb: Because most business models differ slightly from one to another, the decision as to how and for what a firm needs to be authorised may require advice and guidance once the proposed activity is decided.

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