Tenet has today (21 August) become the first network to be granted full permission for consumer credit services by the Financial Conduct Authority, meaning the group can extend its proposition to include credit broking, debt counselling and adjusting, credit information and lending.
The FCA took over consumer credit regulation from the Office of Fair Trading on 1 April 2014. In March the FCA confirmed its finalised rules for regulating consumer credit market but did not specify in a number of instances whether financial advisers would need a licence.
Tenet has always insisted that most advisory firms offer a ‘debt counselling’ that goes beyond mortgage or general advice services and they will therefore need a consumer credit licence.
In addition, there was confusion over whether appointed representatives that were members of networks would be required to hold their own licence if relevant, or if they could be covered via a licenced principal.
The FCA’s consultation had suggested that authorised representatives would not be required to hold their own licence where their principal had one. A spokesperson for Tenet said under the finalised rules its licence would cover its ARs, who would not need to obtain a licence separately.
Mike O’Brien, the group brands director, stated that the move makes it the first network to become fully licensed, adding that the facility is designed for firms where consumer credit activities are incidental to giving mortgage, insurance or investment advice.
“Our ability to simplify the process and significantly lower the cost of authorisation underlines the benefit of belonging to a network.
“We put a lot of effort into preparing to offer this new service and anyone who thinks that varying their permissions is a straightforward procedure may be surprised.”
There are an estimated 50,000 firms that will require FCA authorisation for consumer credit-related services, from debt management firms and insolvency practices, to motor dealers and pawn brokers.
