There is a great deal of misleading information available on the Internet about the Financial Conduct Authority and their involvement in our industry. Our aim in this short section is to unlock some of the key facts concerning the regulatory body, how it effects your business and what you need to do, if anything.
As a customer it is important to know that the business you are dealing with is Financial Conduct Authority approved, giving you 100% reassurance that they are an established company and meet the strict requirements as set out by the Financial Conduct Authority.
As a supplier you may or may not be aware how the regulations introduced in April 2014 affect you, have you obtained authorisation from the Financial Conduct Authority in order to discuss or offer finance to your customers?
Please read our simple explanation below to find out more…
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What is Financial Conduct Authority authorisation?
Financial Conduct Authority authorisation allows equipment suppliers to offer finance options or credit to businesses.
This authorisation comes in different levels; limited or full. As an equipment supplier you would only require limited authorisation, this takes over from what was the Consumer Credit Licence (CCL) as issued by the Office of Fair Trading (OFT).
The licence goes hand-in-hand with the Consumer Credit Act which protects individuals (and regulated businesses from being miss-sold financial products, which are either unsuitable or unaffordable.
Does my business need authorisation?
If you do not have Financial Conduct Authority authorisation, be in Interim Permission or a fully approved licence, you cannot offer finance to regulated customers, you CAN offer finance to non-regulated customers.
Partnership with 3 or less partners
Any public sector
Partnerships of 4+ partners
Local authority schools
There is a lot of conflicting information and lots to take in concerning should I or Shouldn’t I be regulated by the Financial Conduct Authority?
If you would like further information or have any questions please do not hesitates to contact us.