The Financial Conduct Authority (FCA) established the Credit Reporting Interim Working Group (IWG) in January 2024, following its Credit Information Market Study (CIMS) final report. The IWG is tasked with recommending the design and governance of a new industry-led body the Credit Reporting Governance Body (CRGB) but it holds no decision-making power, serving in an advisory capacity to the FCA.
Purpose and Timeline
The IWG was created to ensure credit reporting oversight becomes more inclusive, transparent, and consumer‑focused. It seeks to deliver high‑quality, industry‑wide governance and representative decision‑making in credit reporting. Their work unfolded over a nine-month programme with set milestones; any extension beyond that period needs FCA approval.
Key Stakeholder Impacts
For credit broking and credit hire firms, which often rely on robust credit information systems. the IWG’s work is directly relevant:
- Firms are encouraged to engage with the IWG: While the IWG lacks final authority, feedback channels are open and firms can submit input via published industry events or directly to IWG members or via dedicated emails.
- Consumer outcomes are central: The governance framework that emerges must protect credit data accuracy, consistency, and usage quality in order to safeguard consumers and firms alike.
Latest Developments
In its Final Report, the IWG set out detailed governance recommendations, including CRGB structure, transparency measures and stakeholder engagement models. The FCA published its formal feedback on 8th of July 2025, affirming support for the IWG’s recommendations and noting areas needing further refinement during implementation.
The FCA also confirmed interim next steps and a transition plan, with a full assessment promised once the final CRGB framework is enacted in law or regulation.
Why This Matters for Your Firm
- Standards and Reporting Expectations: Firms involved in credit broking and credit hire depend critically on credit data handling. The CRGB will likely define and raise standards on how credit information is collected, shared and used.
- Governance Influence: The CRGB will include diverse industry and consumer representatives. Firms can anticipate advisory roles or opportunities to contribute to ongoing governance especially if indirectly impacted.
- Regulatory Trends: FCA efforts to drive data-driven oversight are backed by concurrent changes like the new Consumer Credit Regulatory Returns for credit broking, credit hire, debt adjusting and credit information services, introduced in PS25/3 (May 2025). These returns replace previous forms and require more detailed reporting about services, revenues, marketing, and consumer engagement practices.
What Should Credit Firms Do?
- Stay engaged and informed: Monitor FCA communications and participate in consultations or events around both CRGB governance and regulatory reporting enhancements.
- Prepare for enhanced data governance: Firms should review internal processes for collecting, managing, and sharing credit data. Expect increased scrutiny on consent, data quality, transparency, and consumer communication.
- Align reporting to new expectations: The new regulatory returns (under SUP 16.12) require disclosure of revenue streams, appointed representatives, lead generation metrics, top introducers and decline activity.
In Summary
- The FCA’s IWG has delivered its Final Report, shaping proposals for an industry-governed CRGB to oversee credit reporting governance.
- FCA feedback, issued July 2025, shows strong support for these recommendations, with next steps toward full implementation underway.
- Firms in credit broking and credit hire should expect tighter data governance, clearer accountability and enhanced reporting under FCA rules.
- Active participation through feedback, consultation responses and internal alignment will position firms to stay compliant and influence their sector’s evolving governance regime.
By proactively preparing and engaging, credit firms can better manage regulatory change, maintain consumer trust, and stay ahead in a shifting governance landscape.
