Glossary of terms used in the regulatory guide for credit brokers.
Appointed representative (AR)
A person or firm that carries out certain regulated activities on behalf of an FCA-authorised firm (the principal). The principal takes full regulatory responsibility for the AR acting within its agreed scope, complying with our requirements and delivering appropriate customer outcomes. See also introducer appointed representatives.
Client assets
For credit brokers, this usually means looking after your customers’ money, such as fees paid by customers to be remitted to others or money that needs to be refunded.
CONC
Our Consumer Credit Sourcebook. This sets out detailed requirements for firms conducting credit-related regulated activities.
The Consumer Credit Act (CCA)
While most credit-related conduct requirements come from our Handbook (particularly CONC), credit brokers are still subject to a limited number of Consumer Credit Act (CCA) provisions, such as for cancellation rights and post-contract protections. For example, s.155 on broker fee refunds, although CONC 6.8 includes additional detail on such refunds. Please see s.39 of the Financial Services and Markets Act or further information.
Credit agreement
An agreement between a lender and a customer (the borrower) where the lender provides credit. Please see s.8 (1) of the Consumer Credit Act for further details.
Credit-related regulated activity
Activities such as consumer credit lending, consumer hire, credit broking, debt counselling, debt collection and providing credit information services.
Disclosure
Broadly, information you may give to customers to help them understand key features of a product (or credit agreement) to explain key terms, product features, risks and costs.
DISP
Our complaints-handling Sourcebook. This sets out how firms must receive, investigate and respond to complaints fairly and on time. It also covers complaint record-keeping and telling customers about their right to go to the Financial Ombudsman Service.
Distance marketing
Where a firm markets a financial service to a customer without meeting them face-to-face (eg via a phone call, social media or post).
E-commerce
Broadly, where a firm provides information or services to customers through online channels rather than face-to-face.
Financial promotion
An invitation or encouragement to take up certain financial products and investments or services (or claims management activity) communicated in the running of a business. Please see s.21 of the Financial Services and Markets Act for further information.
Full permission credit broker
Broadly, firms that have FCA permissions to introduce customers to lenders or other brokers as the main or standalone part of their business. For example, an independent personal loan credit broker or a motor finance broker (not a car dealer which arranges finance for cars it sells) that arranges car finance like Hire Purchase or Personal Contract Purchase. Your permission type will depend on your firm’s business model. Please check your firm’s permission. See also limited permission credit broker.
Guidance
Explanatory information that explains or shows how firms can meet our rules which is set out in the Handbook. See also rule.
Handbook
The main source of our requirements and guidance. It contains mandatory requirements and explanatory guidance.
High-cost short-term credit (HCSTC)
A regulated credit agreement with an APR of or over 100% which is promoted as providing credit for no longer than a year and/or must be repaid (or mostly repaid) within a year.
Introducer appointed representative
Appointed representatives who can only carry on limited activities on behalf of a principal. They can introduce customers to the principal and distribute non-real time financial promotions on behalf of their principal. See also appointed representatives.
Limited permission credit broker
Typically, firms with FCA permissions to broker credit in a smaller range of circumstances than full-permission brokers, as credit broking is typically not part of their main business. For example: a car dealership which introduces customers to a financial firm through a car hire purchase arrangement. Your permission type will depend on your firm’s business model. Please check your firm’s permission. See also full permission credit broker.
Non-handbook guidance
Explanatory guidance which provides additional support, clarification and examples to help firms meet our rules. It is provided in separate materials and is not included in our Handbook.
PRIN
Our Principles of Business Sourcebook. This sets out the Principles we expect firms to comply with, including the Consumer Duty.
Regulatory return
Any information required that credit brokers must regularly submit to us. For example, firms must submit information about which credit-related activities they perform each year under the 'Consumer Credit Data Return'.
Representative example
An example in a financial promotion showing the typical cost and main features of a credit agreement, giving customers a realistic picture of the credit agreement, and not the best-case or cheapest scenario. Please see CONC 3.5.3 and 3.5.5 for further information.
Rule
A mandatory requirement set out in our Handbook that firms must comply with. If you breach a rule, we may take action against you. See also guidance.
SM&CR
Our Senior Managers and Certification Regime which has 3 key parts: the Senior Managers Regime (which requires firms to identify senior individuals and their responsibilities), the Certification Regime, and the Conduct rules.
Sourcebook
A specific section of our Handbook (eg DISP) which sets out our rules and guidance on a particular topic or for a particular type of firm (eg CONC for Consumer Credit firms).
SUP
Our Supervision Sourcebook. This sets out areas such as notification requirements for significant events or breaches and the information, data and processes in submitting regulatory reports to us.
SYSC
Our Systems and Controls Sourcebook. This sets out requirements for firms under the Senior Managers and Certification Regime, and other organisational requirements.
