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.
EU and national legal framework
Article 3(12) of Directive (EU) 2023/2225 defines credit intermediary with specific conditions, including professional activity and remuneration, and distinguishes someone who merely introduces a consumer to a creditor. Presenting credit, providing preparatory assistance beyond introduction or concluding agreements can fall within the definition. National measures generally apply from 20 November 2026. 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
Creditors provide or promise credit, while intermediaries connect consumers with that credit. A retailer selling a product and presenting a third-party financing offer can perform two distinct roles. Identify the lender, merchant and any broker; do not confuse an intermediary's branding with the identity of the creditor. Allocation of duties follows applicable 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
UK article 36A of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 includes specified credit-broking activities, such as certain introductions. Its legal test differs from the revised EU definition. Check whether the firm carries on the activity by way of business and whether a relevant exemption applies before determining authorisation status. 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
Remuneration may involve commission, lead payments, customer charges or other commercial consideration. A retailer may introduce customers to one lender, while a comparison service connects them with several. Such arrangements affect classification and separate disclosure questions but do not alone determine every regulated activity. Keep contracts and the actual customer journey available. 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
Intermediary duties may involve clarity about status, lender relationships, services, customer fees and relevant commission. UK FCA CONC 3.7 and 4 contain distinct requirements. EU consumer-credit disclosures and intermediary requirements operate under national law. The consumer should not be misled into thinking the broker itself is providing finance when another entity is the creditor. 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
Review the marketing page, introduction, eligibility questionnaire, lender referral, credit offer and agreement. Identify the party controlling each step, the credit product, remuneration and jurisdiction. Test whether the business merely advertises or actively facilitates the credit process. Reassess classification when a firm adds personalised recommendations or begins submitting applications. 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.