Consumer Credit Firms
Consumer FCA Authorisation and Key Regulatory Requirements
To operate in the consumer credit sector, firms must first secure FCA authorisation. This involves proving the firm’s fitness, propriety, and financial stability to ensure sound and compliant operations. Authorised firms are bound by a comprehensive set of rules, including thorough creditworthiness assessments to prevent consumer over-indebtedness, ensure fair treatment of all clients, and adhere to the Consumer Credit Sourcebook (CONC).
Navigating the FCA authorisation process can be complex, but RegTechPRO provides a structured approach to help you demonstrate adherence to the FCAs ‘Ready, Willing and Organised’ principles of authorisation by streamlining regulatory checks, simplifying creditworthiness assessment documentation, and maintaining up-to-date records, ensuring your firm remains compliant.
Conduct and Communication Standards
Consumer credit firms must prioritise transparency and fairness. This includes providing clear, non-misleading pre- and post-contractual information, implementing responsible lending practices, and using financial promotions that comply with FCA regulations. Firms must also ensure robust data protection practices to safeguard consumer privacy and adhere to GDPR requirements.
RegTechPRO’s document management system allows firms to create and manage compliant financial promotions effortlessly. Our templates and checklists ensure all customer communications meet FCA standards. Additionally, our data protection modules provide resources to help you remain compliant with GDPR, while our automated alerts keep you informed of regulatory updates affecting communication practices.
Fair Treatment and Vulnerable Customer Protection
The FCA mandates fair and ethical treatment for all customers, particularly vulnerable individuals. This includes implementing policies that prevent aggressive sales tactics, offering forbearance to customers in financial difficulty, and treating customers in arrears with forbearance and due consideration. Firms must also handle vulnerable customers with care and sensitivity, tailoring their approach to suit individual circumstances.
Our platform offers built-in monitoring tools to ensure your firm’s practices align with the FCA’s Treating Customers Fairly (TCF) guidelines. RegTechPRO helps identify vulnerable customers through a risk assessment framework and provides a detailed record-keeping feature for documenting interactions and offering support. The software also helps train staff to handle vulnerable customers appropriately and ensures compliance with debt collection standards.
Ongoing Compliance and Reporting Obligations
Compliance does not stop at authorisation. Firms must continuously monitor their activities, maintain accurate records, and provide regular reports to the FCA. This includes conducting regular audits, updating staff training programmes, handling complaints efficiently, and adhering to prudential standards to ensure financial stability. Firms must also inform customers about the use of credit reference agencies and comply with rules on transparent and fair credit agreements.
RegTechPRO keeps your compliance management organised and efficient. Our comprehensive auditing and reporting features ensure you can easily track and document compliance activities, providing seamless reporting capabilities to the FCA. The compliance calendar integrates with Outlook and Google, helping you manage audit schedules, staff training, and complaint resolution timelines. Our dashboard gives you real-time insights, making it easy to identify and address compliance gaps swiftly.
Book a no-obligation demo today to learn more about how RegTechPRO can add value to your firm.
