2. Authorising traders
Since 1 April 2014, all businesses must be authorised by the Financial Conduct Authority (FCA) to offer consumer credit (including credit broking) or undertake activities related to debts due under a credit agreement, including debt collection and debt advice. These are all known as ’consumer credit activities’. For further information on authorisation, see .
You can check whether a firm is authorised at . In July 2020, the FCA launched an updated version of the Financial Services Register. Enhancements include clearer design and navigation, together with the use of simpler language and more information on how to use the register. It is a criminal offence to carry out a debt-related activity without the appropriate authorisation. You can report firms that do not have appropriate authorisation or which are not authorised to the FCA Helpline (tel: 0800 111 6768).
An unauthorised firm or individual can become an ‘appointed representative’ of an authorised business as an alternative to being authorised themselves.1s39 FSMA 2000 An appointed representative carries out regulated activities under the supervision of the authorised business, which must take full responsibility for ensuring that the appointed representative complies with FCA requirements. You can find consumer credit rules and guidance in the Consumer Credit Sourcebook, which is part of the FCA Handbook, at . Clients can complain to the creditor or debt collector about any contraventions, refer them to the Financial Ombudsman Service where appropriate, and report them to the FCA.
Since 21 March 2016, most secured loans are covered by the rules and guidance in the Mortgages and Home Finance: Conduct of Business Sourcebook. This is a separate part of the FCA Handbook (see here).