The road to regulation
If yours is one of the 50,000 businesses which offer some form of consumer credit service in the UK, you will soon be subject to much tighter regulatory control with the FCA taking over formal responsibility for regulation of the sector from 1 April 2014.
Businesses are quickly seeking to become fully authorised, on a scale which has not been seen since the payment services sector became regulated by the FCA in 2009.
The application for full permission requires a substantial amount of information to be provided and will take a considerable amount of time to compile. A full permission application requires you to identify, amongst other things, the following:
- a full and detailed business plan
- a risk assessment
- how ‘treating customers fairly' has been embedded into the culture of the firm
- a compliance monitoring programme
- an in-depth description of your IT systems and controls
- various other information.
The new stringent measures have been designed to ensure that the firms for which the FCA is responsible can offer high levels of customer protection, are able to treat customers fairly and to place them at the heart of their business.
Services that PKF Littlejohn provides include:
- preparation of applications either in full or in part for FCA authorisation
- reviews of applications prepared by clients prior to submission to the FCA
- preparation of financial forecasts for inclusion in the application for authorisation
- assisting with responses to queries raised by the FCA following an application review
- advice in relation to implementing the new regulations .
The specialist consumer credit team at PKF Littlejohn has a detailed knowledge of the FCA's authorisation process. This enables us to provide practical advice before, during and after the process, helping you to achieve authorisation and to understand your obligations under the new regulations.