The FCA will put all regulated firms into one of four “conduct categories” – C1, C2, C3 or C4. These broadly reflect a firm's size and customer numbers, and the corresponding level of risk to consumers.
Firms in category C1 (typically, banks) will receive the most intensive level of attention from the FCA, firms in C4 the least. Firms in categories C1 and C2 have a named supervisor at the FCA; firms in categories C3 and C4 are supervised by flexible teams.
The vast majority of consumer credit firms – including motor finance providers, credit brokers and motor dealers – are likely to be in categories C3 or C4. The FCA will inform a firm when they apply to the FCA to be authorised.