Jack and his friends want to set up a consumer credit firm offering credit broking and consumer lending services. He knows that he needs to apply to FCA if they want to carry on these financial activities. One of his friends told him that because their business is small, they doesn’t need to take that formal authorization process, they just need to finish registration. Jack came to ask you the differences between authorization and registration by FCA. Is his friend correct? Explain to Jack your opinion.