Direct explanation and classification
Credit intermediaries help consumers obtain or arrange credit, acting between consumers and creditors in defined circumstances. A company may present financing offers, assist with application preparation, negotiate terms or conclude agreements for a creditor. The business title alone does not determine classification; regulators examine actual functions, products, remuneration and governing law. The compliance assessment should cite the governing provision, identify the responsible legal entity and describe how that rule operates in the particular consumer journey. Retain evidence of the terms and screen or communication used at the time. An internal service description cannot supersede statutory definitions, exemptions or consumer protection duties. Review discrepancies before publication and keep the explanation accessible to consumers.
UK regulatory assessment
Primary brokers specialise in arranging finance, while secondary brokers may arrange it alongside selling vehicles, furniture or services. The FCA recognises both models in its authorisation guidance. A dealer gathering borrower data and presenting finance alternatives may undertake more than advertising. Assessment should cover branches, checkout screens and sales calls. The compliance assessment should cite the governing provision, identify the responsible legal entity and describe how that rule operates in the particular consumer journey. Retain evidence of the terms and screen or communication used at the time. An internal service description cannot supersede statutory definitions, exemptions or consumer protection duties. Review discrepancies before publication and keep the explanation accessible to consumers.
EU and national legal framework
UK FCA CONC 3.7 includes provisions relating to credit broker status, the nature of services and relationships with lenders. FCA status disclosure guidance and applicable GEN rules can also matter to documents and electronic communications. Firms must not imply they hold permissions for unregulated or unauthorised activities. Check the exact communication and firm type. The compliance assessment should cite the governing provision, identify the responsible legal entity and describe how that rule operates in the particular consumer journey. Retain evidence of the terms and screen or communication used at the time. An internal service description cannot supersede statutory definitions, exemptions or consumer protection duties. Review discrepancies before publication and keep the explanation accessible to consumers.
Commercial arrangements and incentives
FCA CONC 4.5.3R requires timely, prominent disclosure of commission or other remuneration in circumstances where its existence or amount could affect impartiality or materially influence recommendations. Do not assume a generic statement fully addresses a conflict caused by ranking incentives. Link remuneration arrangements with the actual customer-facing description and decision pathway. The compliance assessment should cite the governing provision, identify the responsible legal entity and describe how that rule operates in the particular consumer journey. Retain evidence of the terms and screen or communication used at the time. An internal service description cannot supersede statutory definitions, exemptions or consumer protection duties. Review discrepancies before publication and keep the explanation accessible to consumers.
Frequently asked questions
Is every retailer advertising finance a regulated broker?
Not necessarily. The activities and applicable law must be assessed.
Are UK and EU intermediary definitions identical?
No. They have distinct statutory requirements.
Primary sources
Directive (EU) 2023/2225 ↗FCA credit broking rules ↗RAO article 36A ↗Read the source in its current version. National implementing measures and product-specific applicability may require additional research.
Related research
What Is a Credit Intermediary? ↗