Direct explanation and classification
A broker's disclosures should let consumers understand who provides the intermediary service and which entity grants the credit. The legal name, actual role and relevant authorisation status should be clear where required. A merchant offering third-party finance should not imply it is the lender. Timing matters because consumers need accurate information before making consequential choices. 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.
Role distinctions in practice
A comparison service should describe its lender panel truthfully. Searching a limited selection does not justify suggesting all lenders or the entire market were compared. Material commercial relationships can affect what is displayed and how finance is recommended. Distinguish the lender's contractual information duties from the broker's role and disclosure obligations. 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
UK CONC 4.4 includes rules for credit broker charges payable by customers, including applicable advance notices and agreements. Consumers should understand the amount, payment trigger and relevant refund position. A broker charging no direct consumer fee may have different obligations. The firm should supply relevant fee information to the lender when APR calculation requires it. 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.
Consumer transparency and digital delivery
Directive (EU) 2023/2225 establishes revised consumer-credit and intermediary requirements. These operate through national implementing measures generally applying from 20 November 2026. The UK FCA Handbook is a distinct framework, so a single standard disclosure cannot automatically be used in every jurisdiction. Product scope, national law and intermediary role determine the correct approach. 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.
Audit checklist and change triggers
Audit a lender comparison website, merchant checkout, vehicle dealership and telephone application. Retain disclosure text, screen or script versions, time of presentation, consent where relevant, lender panel and remuneration arrangements. Mobile layouts should not obscure important information behind misleading labels. Review content whenever authorisation status, commercial relationships or business functions change. 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.