FairFX gets broker licence

FairFX has been given permission by the Financial Conduct Authority to provide credit facilities acting as a broker.

The company said on Friday that this will allow it to offer a wide range of loan products to both its businesses and retail customers.

As FairFX will be acting as a broker, the loans will be provided by FCA authorised third party lenders. There will be no credit risk to the company and the loans will not appear on FairFX's balance sheet.

Having achieved this regulatory status and following "significant" investment in its digital banking platform over the last couple of years, FairFX said it expects to launch an "innovative, highly digitised" revolving credit product in partnership with iwoca - a specialist lender to SMEs - in the coming months.

"It is intended that this will help small and medium sized businesses to apply and receive a decision in minutes and immediately receive funds," it said, adding that business customers will be able to choose to receive funds directly into their account or onto a prepaid card, either virtual or physical. This will be issued by FairFX under its Mastercard membership.

Chief executive officer Ian Strafford-Taylor said: "This announcement is another major step forward in our strategy of providing a full range of products to our SME customers. We have been working hard on the banking platform, with teams both in Chester and in London, since we acquired CardOne Banking in August 2017.

"Achieving direct membership of Faster Payments and now this regulatory approval are the tangible output of these efforts, and we will have more exciting product developments to announce in the coming months."