Context
The FCA has published a ‘regulatory guide for credit brokers’, aimed at smaller credit brokers (generally, firms with fewer than 10 people), to help them understand and implement the FCA’s expectations in a way that is proportionate to their business. This includes firms authorised as ‘Limited Permission’ credit brokers (which could include motor dealers, dentists or gyms) or ‘full permission’ credit brokers (which could include firms whose main business is introducing customers to lenders or brokers). This guide is also relevant for Appointed Representatives (ARs).
Key points to note and next actions
This guide explains The FCA’s requirements and expectations, and where they derive from. It also includes case studies to illustrate good practice, and a glossary. The sections of the guide are as follows:
- Section 1: Running your credit broking business – the basics
- Section 2: Promoting your business and finding customers
- Section 3: Dealing with customers
- Section 4: Making sure the right people are in the right roles
- Section 5: What checks your business needs to have in place
- Section 6: Handling complaints when things go wrong
- Section 7: Updating us
- Section 8: How we supervise firms
- Section 9: Using appointed representatives
This guide is part of a pilot to support small firms to navigate the FCA’s requirements. The FCA will welcome feedback on whether firms find it helpful.