Consumer Credit Insights

The term 'asset finance' covers a range of regulated and unregulated funding activities intended to allow individuals and business a means to obtain ownership and/or possession of a variety of assets. Funding mechanisms can include HP/PCP. Leasing and loans, as well as security arrangements. Assets can range from 'hard' through 'soft' to non-physical items such as insurance premiums.

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The consumer duty will impact all regulatory and compliance issues relating to asset funding, including;

Documentation/ process development
Start up projects
Intermediated markets
Asset/company sales
Due diligence exercises
Data protection
Corporate governance
Anti money laundering

FCA/CCA compliance is a subsector of general asset finance, requiring a combined understanding of the both the technical CCA issues and the general requirements of being an FCA authorised firm, linked to an appreciation of the wider commercial factors which impact and underpin all asset funder activity. In addition, FCA/CCA compliance applies to a number of non-asset based funding arrangements, such as bank overdrafts, credit and store cards, BNPL and general personal lending.

Our experience in this specialised sector is unrivalled, and includes

CCA documentation/processes
FCA Handbook compliance
Consumer Duty advisory
Senior manager and certification regime
CCA remediation exercises
FCA adverse disclosure/supervision/enforcement

The Consumer Duty Hub, alongside the team's vast experience serves as a valuable resource for both independent and bank owned funders, as well as other businesses requiring such advice (such as product manufacturers and dealers, retailers, insurers and finance intermediaries) The Hub offers a comprehensive collection of articles dedicated to understanding and meeting the obligations set by the Consumer Duty.

Implementing the FCA Consumer Duty – a Consumer Credit Act (CCA) Perspective

The Final Rules and Guidance on Consumer Duty have been published. Both the direction of travel and the majority of the detailed requirements have been clear since last year, and the latest FCA publication on the subject contains no major surprises.

Considerations for CCA lenders for the implementation of the Consumer Duty

Have you read our previous articles providing an overview of the required risk analysis and our recommendations of how to assess outcomes when implementing the Consumer Duty in your organisation?

Consumer Duty Temperature Check & Assurance

Part of our Consumer Duty offering is a one-day ‘temperature check’ service, which is intended to provide you with a rapid and insightful review of your Consumer Duty compliance and alignment. We can also provide an independent assessment of firms’ culture and behaviours, to understand how it is supporting good customer outcomes.

Assessing Risks and Analysing Outcomes – developing a Compliant Approach for the regulated credit market

Viewed at the highest level, credit is a relatively simple FS product and the cardinal risk for a borrower obvious; the risk of not being able to afford to repay. It is, though, worth looking at the FCA's intended Handbook explanation of the purpose of Principle 12 in a lending context.

FCA speech on cultural evolution: How culture must change to meet expectations

Emily Shepperd, Chief Operating Officer and Executive Director of Authorisations at the FCA delivered a speech to the Westminster Business Forum highlighting the importance of culture for confidence and how it can dictate bottom lines.

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Richard Humphreys

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