In the fast-evolving consumer credit marketplace, firms and appointed representatives must maintain sharp awareness of regulatory shifts to remain compliant and competitive.
Appointed Representative Oversight & Accountability
With the Financial Conduct Authority (FCA) increasingly scrutinising the relationships between principal firms and their appointed representatives, both parties face heightened expectations for governance and oversight. The FCA’s recent focus emphasises firms must clearly define responsibilities, ensure robust monitoring and mitigate risk across the AR network. This means principals should proactively monitor AR activity, maintain thorough records and verify compliance frameworks are consistently applied. Appointed representatives themselves must stay vigilant, uphold standards and engage in regular dialogue with their principal.
Financial Promotions & Consumer Duty Compliance
Increasingly, the FCA is turning its spotlight toward how credit firms promote their services and ensure consumer‐focused outcomes under the Consumer Duty framework. Marketing communications must be clear, fair and not misleading, and they must also reflect the target customer’s needs and deliver fair value. Credit firms and ARs alike should review all financial promotions, check consumer journeys, assess suitability and guard against emerging risks such as hidden fees or complex product features. Maintaining compliance is fundamental to building and sustaining regulatory trust
Financial Crime, Redress Schemes & Credit Reporting Developments
Another key area of concern is financial crime oversight, especially for credit brokers and hire-purchase firms. The FCA’s recent survey revealed alarming gaps in how firms manage financial crime controls highlighting risks of money-laundering and consumer harm. Furthermore, the proposed motor-finance consumer redress scheme and evolving credit‐reporting initiatives mean credit firms must gear up for change. Whether adjusting to upcoming redress obligations or responding to new data-sharing standards, proactive preparation gives firms a clear advantage.
Why this matters
Regulatory infractions not only carry enforcement risks but also damage reputation, erode consumer trust and impair future growth. By staying on top of AR oversight, financial promotional compliance and evolving obligations around crime and data, credit firms and appointed representatives position themselves for resilience and success.
