starting a commercial finance / development funding brokerage

[KeepingBusinessSimple]

Would anyone know the requirements to start a commercial property finance brokerage?

I understand the requirements around residential mortgages/compliance etc.

Do any of the same regulations apply or are needed for commercial?

 

[Scalloway]

The FCA and commercial property finance brokers.

https://www.limeconsultancy.net/fca-authorisation-commercial-finance-brokers/

 

[Mark T Jones]

As per the blog; you don't strictly need to be regulated, but there are grey areas -= and many lenders will require it to take you on as a broker. Regulation in this area is currently reasonable light touch, but I suspect the FCA will focus on it n the foreseeable future

It's a relatively crowded market - your success (or otherwise) will really depend on the quality of your contacts - both introducers and lenders - and, of course your understanding of the nuances/variance between those lenders.

 

[KeepingBusinessSimple]

As per the blog; you don't strictly need to be regulated, but there are grey areas -= and many lenders will require it to take you on as a broker. Regulation in this area is currently reasonable light touch, but I suspect the FCA will focus on it n the foreseeable future

It's a relatively crowded market - your success (or otherwise) will really depend on the quality of your contacts - both introducers and lenders - and, of course your understanding of the nuances/variance between those lenders.

Thank you for the information - really helpful.

To look at future-proofing and getting ahead of the game, where would you start with getting fca authorised? Is it a different level for unregulated products etc?

 

[Gordon - Commercial Finance]

As Mark mentions, in theory you could do the unregulated business without any authorisation at all, but in reality you won't find a lender who will work with an unregulated broker.

You need Full 4a permissions for Credit Broking. This will allow you to do most types of commercial funding, including the regulated stuff for Sole Traders etc, and it will allow you to do all the commercial property stuff such as bridging and development, as long as its not regulated. Regulated property funding (for homeowners etc) needs to be an "advised service" and so you need to have CEMAP etc and the regulation that goes with doing an advised mortgage product is brutal.