Credit Broking Services
Comprehensive support for credit brokers operating as Appointed Representatives or seeking direct FCA authorisation. We help you navigate the regulatory framework, whether you're building an AR network or operating as a Principal Firm.
Understanding the Appointed Representative Model
How the AR framework works for credit broking businesses
Appointed Representatives
Operating under a Principal Firm
Credit brokers who conduct regulated activities on behalf of a Principal Firm
Key Features:
- No direct FCA authorisation required
- Operate under Principal's permissions
- Principal responsible for AR activities
- Lower regulatory burden on AR
- Faster route to market
Requirements:
- Agreement with an authorized Principal Firm
- Compliance with Principal's policies
- Ongoing training and competence
- Activity reporting to Principal
- Consumer Duty compliance
Principal Firms
Managing an AR network
FCA authorized firms that take responsibility for Appointed Representatives
Key Features:
- Full FCA authorisation required
- Ability to appoint ARs
- Responsible for AR compliance
- Network management capabilities
- Enhanced oversight obligations
Requirements:
- Appropriate FCA permissions
- Robust AR oversight framework
- Due diligence procedures
- AR monitoring and supervision
- Financial resources for AR activities
Credit Broking Activities
Understanding what credit broking involves and regulatory requirements
Credit Introduction
Introducing customers to credit providers
- Customer referrals to lenders
- Credit matching services
- Application facilitation
- Commission arrangements
Credit Arrangement
Arranging regulated credit agreements
- Credit agreement negotiation
- Terms and conditions discussion
- Application processing
- Documentation support
Credit Advisory
Providing advice on credit products
- Credit product recommendations
- Affordability assessments
- Suitability evaluations
- Consumer protection compliance
Lender Relationships
Managing relationships with credit providers
- Panel management
- Commission negotiations
- Service level agreements
- Performance monitoring
Compliance Obligations
Meeting regulatory requirements
- Consumer credit regulations
- Affordability checks
- Clear disclosure requirements
- Treating customers fairly
Business Development
Growing your credit broking business
- Marketing compliance
- Lead generation
- Conversion optimization
- Customer retention
Principal Firm Oversight Obligations
FCA requirements for firms managing Appointed Representative networks
Due Diligence
Comprehensive AR vetting processes
- Background checks on AR principals
- Financial stability assessment
- Competence and capability review
- Business model evaluation
- Fit and proper assessments
Ongoing Monitoring
Continuous AR supervision and oversight
- Regular compliance monitoring
- Activity and transaction reviews
- Complaint analysis
- MI reporting and analysis
- Periodic AR assessments
Training & Support
Ensuring AR competence and compliance
- Initial compliance training
- Ongoing CPD programs
- Regulatory update communications
- Policy and procedure guidance
- Competence assessments
Risk Management
Managing risks from AR activities
- AR risk assessments
- Financial crime controls
- Conduct risk monitoring
- Remediation when issues arise
- Termination procedures
How MEMA Supports Credit Brokers
Comprehensive support for ARs and Principal Firms
For Appointed Representatives
Support for credit brokers operating under a Principal
Includes:
- Principal Firm selection guidance
- AR agreement review
- Compliance framework setup
- Training and competence programs
- Ongoing regulatory support
For Principal Firms
Building and managing compliant AR networks
Includes:
- AR network structure design
- Due diligence frameworks
- Monitoring and oversight systems
- AR agreements and documentation
- FCA liaison and reporting
For Direct Authorization
Alternative to the AR model - full FCA authorisation
Includes:
- FCA application preparation
- Business plan development
- Permissions guidance
- Post-authorisation compliance setup
- Ongoing regulatory advisory
Critical Considerations for Credit Brokers
Key regulatory and business factors to address
Ready to Build Your Credit Broking Business?
Whether you're becoming an AR or building a Principal Firm, we're here to help
📞 Phone: 0330 133 0811
📧 Email: contact@memaconsultants.com