The FCA is sending a survey to all firms holding the credit broking permission. The survey was initially sent to 300 firms as a pilot exercise on 20th May 2021. The survey will provide the FCA with an updated view of how firms are using their credit broking permission, which will help to mitigate the risks of harm to consumers. The questions asked will be relevant to firms’ business models, for example, the type of credit broking activity carried out, including how the firm is remunerated and how many creditors the firm has a relationship with.
95% of firms in the pilot completed the survey within 30 minutes. The survey will be sent in batches over two weeks from 5th July 2021, and firms will have 15 working days to submit their responses.
Whilst the FCA is not seeking this information under its formal information gathering powers, firms are expected to complete it. Firms are reminded of their obligations under Principle 11 to deal with their regulators in an open and cooperative way. If you do not complete the survey the FCA may contact you to understand the reasons for this. Further information is available on the FCA’s webpage and in the useful Frequently Asked Questions page.
The FCA will send an introduction e-mail to firms in the week before they receive the survey. Firms will then be e-mailed a unique link to complete the survey online. If firms need a different individual within their organisation (or a consultant) to answer and submit the survey, the link can be forwarded to the required person.
We know firms will be concerned about phishing emails and scams. Firms should check the email is from either FCA@fcanewsletters.org.uk or FCACreditBrokingSurvey@fca.org.uk. If you do not receive the survey, you may wish to check junk or spam folders.
In addition, any firms with FCA permission to lend money may also receive a separate Firm Forbearance Survey to complete within 15 working days of the receipt date. Any communication in relation to that survey is likely to come from FCAfirmforbearancesurvey@fca.org.uk. This survey follows on from the FCA’s coronavirus-linked Forbearance project and is likely to ask questions about:
- Monitoring customers for financial distress before missing a payment
- Arranging forbearance solutions for customers who have missed at least one payment
- Fees and charging structures for customers in arrears
- Quality Assurance and Oversight of Collections and Recoveries
- Referring customers to debt advice organisations
The FCA will be providing a Frequently Asked Questions document that could help firms complete the survey.
For further details on this story, or any other compliance-related topic, contact our expert team on 01925 767888, or email helpline@ukgigroup.com.