The National Association of Consumer Finance Brokers is changing its code of practice to ensure members comply with Financial Conduct Authority’s consumer credit regulation.
Amendments will be made on 23 September in Birmingham when the trade body holds a member meeting. The updated code of practice will also be available on the NACFB website.
The NACFB will produce a separate policy for unregulated members as it looks to promote clarity for commercial finance brokers.
Adam Tyler, chief executive of the NACFB, said: “The NACFB has been dealing with FCA regulation for two years now but now things are now coming to a head with consumer credit changes being implemented from next March.
“This will be the first time we’re incorporating the FCA into our member code of practice which will be enshrined in law from September.”
Since April 2014 brokers have required either full or limited permissions from the FCA in order to conduct, advise or refer consumer credit business.
The NACFB chief played down fears unregulated members will fail to conduct business in the sector, despite a swathe of lenders such as Precise Mortgages, LendInvest, Funding 365, Bridgebank, United Trust Bank, Mint bridging and Amicus saying brokers will need full consumer credit broking permissions.
He added: “We’ve lived with that for years: there are lenders where Buy-to-let business will be dealt with by the commercial department.
“It’s never been a problem for us because there are lenders that will deal with unregulated business.”