FG18/6: Helping tenants find alternatives to high-cost credit and what this means for social housing landlords

Open consultation: CP18/12
31/05/2018
Consultation closed
31/08/2018
Finalised Guidance: FG18/6
18/12/2018
18/12/2018

We have published final guidance for registered social landlords to provide greater clarity about the activities for which they are likely to require authorisation as credit brokers.

Show FG18/6 (PDF)

Show CP18/43 (PDF)

Changes to this guidance – August 2019

We are in the process updating this guidance – FG18/06 – to reflect new legislation, as some parts of this Finalised Guidance are now out of date.      

This is because of an amendment to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. This means that registered social landlords (RSLs) can now refer tenants, or potential tenants, to some credit activities without requiring authorisation from the FCA.

RSLs can only refer without FCA authorisation (known as an exclusion) where:

• the activity concerned is effecting an introduction of an individual who wishes to enter into a credit agreement

• the introduction is to a credit union, community benefit society, registered charity (or subsidiary of a registered charity), community interest company limited by guarantee or subsidiary of an RSL, and

• the introduction is provided fee‑free, i.e. the RSL receives no fee (which includes pecuniary consideration or any other financial consideration)

The rest of FG18/06 remains relevant to RSLs. Those carrying out credit broking activities which do not fall within the terms of the exclusion still require authorisation as credit brokers.