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19 January 2021

Changes to credit broking disclosure rules and guidance in Consumer Credit sourcebook (“CONC”) come into force on 28th January 2021. Brokers must greater clarity on the level of disclosure brokers are expected to provide to customers to enable customers to make informed decisions and lenders must ensure that they have appropriate control over their broking networks.

Changes include:

  • Brokers must prominently disclose the nature of any commission arrangement in addition to the existence of a commission arrangement and how the existence and nature of the commission arrangement may affect the amount payable by the customer under the proposed credit or hire agreement (with the requirement for prominence to be made express in the rules); and
  • Brokers to disclose to consumers, where applicable, the fact that its commission varies due to a factor specified in the arrangement with the lender. Disclosure may be in general terms however should nonetheless enable the customer to reasonably appreciate the effect of the arrangement on them.

It is to be noted that the revised credit broker disclosure rules and guidance is to apply to consumer hire brokers.

The FCA consider that these enhancements will increase the likelihood of consumers receiving more relevant information about commission arrangements and how they would potentially impact on them in order to make informed transactional decisions. The FCA consider that the benefit to consumers, is that they are more likely to compare prices, find or negotiate cheaper deals and ultimately obtain better value credit products.

For more information or to find out how we can help, please feel free to contact us on 01423 613066 or email

By Samantha Connor

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