Well that's embarrassing
I presume a number of highly paid advisors have got a suitable bollocking for this cock-up.
I expect a lot of commentards are fuming "stupid red tape", but I think having the FCA approve people who make loans is, in general, a good thing. I suppose it would be possible to complicate the regulations further, by excluding "Cycle to work" loans - but adding loopholes to that sort of regulation is just the sort of thing that bad actors are waiting for. The alternative is a reasonably light-touch approach ... and adding another item to the "things to check when taking over a British company" checklist.