Emma Marsden, Compliance Officer at Asset Finance Solutions (UK) Limited has raised concerns that many businesses wishing to operate in the Consumer Credit market still need to prepare themselves for regulation.

“I’ve been surprised by the lack of understanding of many of the businesses I have spoken to who operate in the Consumer Credit Market,” Says Marsden.

“Many businesses that are in or approaching their landing slots with the FCA don’t appear to have looked at the application forms yet, let alone considered the implications to their business.”

“We are currently inundated with calls from businesses asking what they need to do and looking for an alternative to direct authorisation,”

Emma went on to confirm: “Being a Principal we can offer suitable businesses and individuals Appointed Representative status, but there is a process to go through, also taking this route is not a way to avoid regulation, merely a way to allow the Principal firm to take away a lot of the burden, but not all of it.”, “also consider that the Principal will need time to  undertake the steps required to set up an Appointed Representative and if necessary undertake any training that is needed. During this period if the party in question has no interim permission they will not be able to trade in the consumer credit market.”

Emma went on to say: “If you are considering going for direct authorisation give yourself time to complete all the relevant forms and also consider the impact on your business on a day to day basis.”

“If you are considering joining a Principal network then give yourself and the Principal time to get you set up and approved, it is not a simple sign up process, or it shouldn’t be if the Principal is undertaking the correct procedures to appoint you.”