In recent years, there has been an unparalleled rise in retail and professional consumers seeking or being offered products or services from lending firms. This increase in demand has resulted in a surge in the number of FCA regulated firms offering these services, alongside those seeking authorisation. This sector is likely to impact most consumers throughout their lives, whether it be through consumer credit, vehicle finance, business lending, P2P or mortgages. As such, the Regulator does not take the supervision of lending firms lightly. Recent reforms to the sector have seen the introduction of the Consumer Duty as well as the outright ban of the debt packager referral fee for debt management firms. Consumer credit laws and regulations will also see changes as the UK government commits to modernise legislation which has been largely unchanged for 50 years.  

All FCA regulated lending firms that provide products and services to or have any material influence on the retail market must comply with the Consumer Duty. Specifically, these firms must ensure proper governance, systems and controls and that policies and procedures are updated to meet these obligations.

Business lenders must also consider the message behind the Duty.  The FCA has highlighted that lenders must treat business customers fairly, ensuring quality assurance, testing and staff training is in place, alongside clear policies and procedures to identify vulnerable business customers.  

Whether you are an existing lending firm, newly applying for authorisation or are an overseas lending services provider seeking to enter the UK regulated market, at Complyport we bring together our specialist knowledge and experience of compliance, regulation and due diligence to help you navigate the increasingly complex and ever-changing regulatory environment.  

How Complyport can help?

We have over 22 years’ experience helping firms understand and comply with complicated regulations. Lending services providers we support include:  

• Business lending and finance; 
• Consumer credit; 
• Mortgages;  
• P2P lenders.   

Our experienced team closely monitor the regulatory landscape and help our clients to maintain the highest levels of regulatory compliance. 

• Assisting firms to deliver on the FCA’s standards for good consumer outcomes.
• Implementing the Consumer Duty rules to ensure firm-wide compliance.
• Undertaking  Healthcheck reviews to ensure your firm is operating in line with its regulatory requirements
• Ensuring that robust financial crime prevention is in place.
• Building solid anti-market abuse mechanisms and controls.
• Identifying specific risks relevant to the client and assessing mitigation.
• Creating firm-wide regulatory risk frameworks that align with the relevant client’s business model and risk appetite.
• Establishing solid operational resilience.
• Delivering training in person or virtually to staff and senior management to satisfy the FCA’s training requirements.
• Authorisation and assessment of senior management roles, certified to provide lending services.
• Ongoing advisor services for ad-hoc questions or queries that may arise in the natural course of business.