Firms that do not have a regulated income (e.g a credit broker that does not earn any commissions or charge fees for their activities) will now have to use a proxy measure to display their annual income. They can do this by taking an average of the value of the referrals across 12 months, multiply this by 5% and the Bank Of England base rate at 0.5%
Firm refers £1000 a month to credit brokers.
£1000 x 12 = £12000
£12000 x 5.5% = £660