MEMBERS of the Finance & Leasing Association still have concerns over the Financial Conduct Authority’s (FCA’s) new consumer credit regulatory regime – but they are much better prepared for it.
The Finance & Leasing Association (FLA) members have again been polled on their experience of dealing with the FCA and its new regulatory requirements in the new consumer credit shake-up, and nearly two-thirds felt their companies were well prepared for regulation compared with just a third a year ago and 43% in March.
In 2014, FLA members provided £100 billion of new finance to UK businesses and households.
When asked what had been the most challenging aspect of preparing for, or going through, FCA authorisation, 70% of delegates said it was knowing what information the FCA required of them.
But only 8% thought the FCA had a good understanding of the credit industry and their sector in particular while 66% thought that while it had a good understanding it needed more detailed knowledge.
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And 68% said the cost of FCA regulation had been higher than they had originally budgeted for and over half said they were concerned at the prospect of future regulation and associated costs.
Fiona Hoyle, head of consumer finance at the FLA, said: “Firms are much better prepared for FCA regulation than they were a year ago. This is a great achievement, considering the break-neck speed at which the regime was implemented.
“But the industry – and in particular the intermediary market – needs more certainty about the information the FCA expects to see in authorisation applications. We have asked the FCA to consider ways of making their requirements clearer, so as to avoid unnecessary delays for firms applying for authorisation.”