The FCA has provided guidelines for the permissions needed around credit broking, but this figure is a clear sign the majority of brokers and introducers expect lenders to interpret these guidelines and provide further clarity.
This statistic was further supported by four-fifths (81.9%) of respondents saying they would find it valuable for Shawbrook to provide some guidelines around FCA permissions relating to direct and introduced business - something the lender is taking very seriously with work well underway to support the broker community. These findings were part of Shawbrook’s quarterly survey designed to test the temperature of the commercial intermediary market.
Among those who think lenders should take a proactive role in disseminating the regulation requirements, brokers commented on the lack of uniformity amongst lenders regarding what is required. Some revealed they’ve received confusing comments from lenders, and that the latter need to be clear about their expectations. One point of view was that lenders should lead the way as “they have the infrastructure and financial capability to translate the guidelines and relay that information” to the brokers.
Of the third (33.6%) who disagreed with the statement, they were fairly equally split between those who believed the FCA should lead and those who believed it is everyone’s responsibility to research the regulatory requirements.
Almost nine out of ten (89.3%) believed their business was ready for the incorporation of the Consumer Credit Act (CCA) into the FCA, with many being licensed for mortgage advice already. When asked what the biggest challenge facing their business over the next six months was likely to be, only one in six (14.8%) named obtaining FCA authorisation. Lending restrictions were viewed by over a quarter (26.8%) as being the biggest challenge, with over a fifth (21.5%) listing the on-going impact of the MMR.
And regulation seems set to be an on-going discussion as 86.6% believe the buy-to-let (BTL) market will eventually be regulated, with nearly half (49.7%) expecting it to be regulated within the next two years.
Karen Bennett, Sales and Marketing Director, Commercial Mortgages, Shawbrook Bank, said:
“At our Partner Days held in the summer, we provided brokers with guidance notes on FCA permissions, addressing questions such as what constitutes credit broking, as well as Shawbrook’s stance, which were well-received. As one of the NACFB’s sponsors, we also supported their series of compliance services seminars designed to educate brokers about the new CCA regulations. We are fully aware of brokers’ desire for clear instructions around this issue, and we are working toward the release of material to help ensure our expectations are communicated as transparently as possible.”
