Direct explanation and classification
A business may be a credit broker even if finance is not its principal service. Retailers, motor dealers, digital platforms and specialist intermediaries can perform relevant credit-related activities. Classification depends on what the organisation actually does, including introductions and application assistance, rather than a description such as partner, advertiser or sales agent. 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 article 36A of the Regulated Activities Order defines types of credit broking, including specified introductions involving individuals seeking regulated credit and lenders or other brokers. Some activities and agreements can fall within exemptions. A legal classification should identify the customer, receiving party, product, commercial purpose and each step of the proposed introduction. 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
Under revised CCD2 Article 3(12), a mere introduction is expressly distinguished from certain intermediary activities, unlike aspects of the UK framework. Other actions, including presenting offers or undertaking preparatory work, may be relevant where the remaining statutory conditions are satisfied. National measures generally apply from 20 November 2026, so current local law must be checked. 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.
Commercial arrangements and incentives
Fees, commission and preferential lender relationships may affect recommendations and create disclosure requirements. However, receiving a payment does not automatically prove that a marketing company performs a defined regulated service. Analyse the precise function, remuneration conditions and legal scope. Document whether offers are ranked for consumers or simply displayed as advertisements. 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
An online referral pathway can evolve into application assistance through eligibility scoring, prefilled forms, broker recommendations and API-based lender submissions. These changes can alter the legal classification even if the website design looks similar. Track what the consumer sees and where data is sent. Financial promotion and personal-data requirements may apply independently. 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
Prepare an activity map recording each legal entity, product, jurisdiction, lender, introduction, data transfer, customer communication and commercial reward. State which rule or exemption supports the classification. Retest when the service adds a lender panel, recommendation algorithm or contractual negotiation. Avoid accepting a partner's verbal label as sufficient legal evidence. 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.