Three out of five (60%) consumer credit firms attending the Finance & Leasing Association (FLA) March conference said the greatest regulatory challenge they were facing was understanding what ‘good’ compliance meant from the Financial Conduct Authority’s (FCA) perspective.
Almost one in five (17%) said the biggest challenge was keeping track of whether brokers were correctly authorised, and the same number said the biggest challenge was ensuring all remuneration structures were compliant.
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Attendees were also asked about their experience of preparing for, or going through, the FCA authorisation process. 76% said it was onerous, 22% said it was straightforward, and just 3% said it was easier than expected.
While the majority were finding the process onerous, almost three quarters (72%) of attendees said they had found the FCA to be helpful or very helpful in answering their queries.
Fiona Hoyle, head of consumer finance at the FLA said: "Having been constructed and implemented on such a short timetable, it is not surprising that a regulatory regime of this size and complexity covers many areas where more clarity is still needed.
"The real test for the regulator is how quickly they can sort out the queries, so that the regime can then bed down. We welcome the very collaborative approach the FCA is taking with us to help achieve this."
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