FCA Credit Broker Permissions Fall 45% Since Pandemic as Regulator Tightens Supervision

What the FCA data shows

FCA data published in June 2026 shows the total number of firms holding credit broker permissions has fallen 45 percent from the pandemic-era peak. The FCA has been actively reviewing firms that hold consumer credit permissions but show no evidence of using them, cancelling permissions where firms cannot demonstrate active use. The regulator has also conducted targeted supervisory work on sectors with higher risk of consumer harm, including claims management companies that pivoted into credit broking and introducer firms operating at the boundary of regulated activity.

Credit broking is a regulated activity under the Financial Services and Markets Act 2000 and the Consumer Credit Act 1974. Any firm that introduces customers to a lender, or assists customers in obtaining credit, must hold FCA authorisation for credit broking unless an exemption applies. The FCA register at register.fca.org.uk shows the current authorisation status of any firm.

Why the FCA is thinning the credit broker market

The FCA's supervisory strategy for consumer credit has focused on reducing harm from poorly supervised introducer networks, opaque commission arrangements and firms operating with permissions they do not actively use. The motor finance discretionary commission arrangement (DCA) scandal -- which led to the Supreme Court ruling in 2025 and a major redress scheme -- highlighted how credit broker commission structures can generate consumer harm at scale when insufficiently supervised.

Following the DCA ruling, the FCA reviewed its approach to credit broker oversight more broadly, including commission disclosure requirements across all consumer credit products. The reduction in active permissions reflects both market exits and the FCA's use of its own-initiative variation powers to remove permissions from firms that cannot meet supervisory expectations.

What this means for consumers

A smaller, more closely supervised credit broker market should in principle mean consumers are less likely to encounter firms operating outside FCA rules. However consumers should still verify any credit broker's FCA authorisation before providing personal data or entering an agreement. The FCA register shows whether a firm is authorised, what permissions it holds, and whether it has any regulatory history including warnings or enforcement actions.

Consumers who have been introduced to a credit product by a broker should check whether commission was disclosed. Under the FCA's CONC rules, brokers must disclose the existence of a commission where it could affect their impartiality, and must disclose the amount on request. The Financial Ombudsman Service can consider complaints about undisclosed commission arrangements.

Impact on the intermediary mortgage and finance market

The reduction in credit broker permissions is concentrated in sectors with higher historic non-compliance. Mortgage intermediaries regulated under MCOB are a separate population from consumer credit brokers regulated under CONC, though many firms hold both sets of permissions. The Mortgage Solutions data indicates that specialist and commercial finance brokers have been less affected by the permission reduction than generalist consumer credit introducers. The NACFB and AMI continue to represent active broker communities in mortgage and commercial finance respectively.

Frequently asked questions

What is a credit broker permission?

A credit broker permission is an FCA authorisation allowing a firm to introduce customers to lenders, present credit products, or assist with credit applications. It is a regulated activity under FSMA 2000 and the Consumer Credit Act 1974. Firms must be FCA-authorised to carry out credit broking unless a specific exemption applies. Check any firm's permissions at register.fca.org.uk.

Why has the FCA cancelled so many credit broker permissions?

The FCA has used own-initiative variation powers to remove permissions from firms that hold authorisation but cannot demonstrate active, compliant use. Following the motor finance DCA scandal and increased supervisory focus on commission arrangements, the regulator reviewed its entire credit broker population and cancelled permissions where firms did not meet supervisory standards or had ceased trading.

Does the 45% reduction affect mortgage brokers?

Mortgage intermediaries are regulated under MCOB rather than CONC and form a separate population. The 45 percent reduction primarily affects consumer credit broking permissions. Many mortgage brokers also hold consumer credit permissions, and some of those may have been affected, but the mainstream mortgage intermediary market has been less impacted than generalist consumer credit introducers.

How do I check if a credit broker is FCA-authorised?

Search the FCA Financial Services Register at register.fca.org.uk by firm name or FCA reference number. The register shows whether the firm is currently authorised, what regulated activities it is permitted to carry out, and any regulatory history. A firm that cannot produce an FCA reference number or whose details do not match the register should not be used.

What should I do if a credit broker did not disclose their commission?

Under CONC 4.5, credit brokers must disclose the existence of a commission where it could affect their impartiality. If you were not told about a commission and you believe it influenced the product you were offered, you can complain to the firm first, then to the Financial Ombudsman Service (FOS) if you are not satisfied with the response. The FOS can award redress where undisclosed commission arrangements caused consumer harm.