Debt Counselling and Debt Adjusting

If you are a firm who wishes to provide debt advice to clients i.e. consumers, you will first require authorisation from the Financial Conduct Authority (FCA) for Debt Counselling and/or Debt Adjustment permissions. Firms that seek out these permissions are most commonly known as Debt Management companies.

Should a firm become authorised for Debt Counselling, the firm will be able to provide prospective clients with debt advice and generate leads for third parties. Typically, cases would be packaged and shared with an authorised debt solution provider or Insolvency Practitioner, depending upon the solution. Firms often include additional permissions to be able to introduce client’s for debt consolidation loans, secured or unsecured and wherever suitable.

If your firm’s model includes the administering of Debt Management Plans, Debt Counselling, Debt Adjustment and Holding Client Money permissions would be required. This would enable the firm to advise clients regarding the liquidation of debt, to speak with creditors on the client’s behalf and establish debt management plans to collect, hold and distribute client money to creditors less any commission owed to the firm for the provision of the service.

Applicant firms seeking FCA authorisation require an established and coherent compliance monitoring framework and must be able to demonstrate that the business model is one that meets the requirements of the FCA’s rules and principles. Those in control or who will have management responsibilities within the firm must also be suitable and appropriate.

Appointed Representatives and Principal Firms

Firms that become authorised by the FCA may extend authorised permissions to third party firms. These are known as ‘Appointed Representatives’. In having an AR, an authorised firm would be understood as the Principal firm. Many firms start as Appointed Representatives before seeking direct authorisation from the FCA to become a Debt Management company, although this is not required.

For more information regarding Appointed Representatives and Principal Firms, please click here to visit our page.

How can Scott Robert help you?

Interested in becoming authorised by the FCA? Scott Robert can certainly assist your firm.

If you are wishing to become directly authorised by the FCA, Scott Robert can help you with the authorisation journey, this would start with one of our Regulatory Advisors discussing your proposed business model and drafting your regulatory documentation (Regulatory Business Plan, Business Continuity Plan, Compliance Monitoring Plan, Treating Customers Fairly Gap Analysis and Vulnerable Customer and Mental Capacity Policy).

A full Compliance Manual would also be provided, enabling the firm to understand and comply with regulatory requirements through the provision of policies, procedures, assessment, monitoring and record keeping documentation.

Following this, we will prepare the online application for submission to the FCA. Once submitted, we will continue to assist with any responses to the FCA.

If you are already authorised, we can assist you with your ongoing regulatory requirements, our bespoke plans are designed to fit your individual needs and budget.

  • Call and Email Support
  • Individual Policy Document Creation, Review and Amendments
  • Compliance Monitoring Plan Creation and Assistance
  • Second and Third Line of Defence Monitoring and Guidance
  • Compliant Handling Assistance
  • Financial Promotion and Website Reviews
  • Ongoing Senior Management and Certification Requirements

You can read more about Debt Counselling and Debt Adjustment authorisation on the FCAs website or you can download our free guide below.

Why Choose Scott Robert?

Scott Robert has been supporting firms through the FCA compliance process since 2008. In that time, we have helped hundreds of businesses to successfully gain and retain FCA authorisation.

We employ a team of compliance professionals who are both highly experienced and expertly skilled. We specialise in providing our clients with solutions to often complex regulatory requirements and compliance needs.

Our industry insight and comfort with compliance enables our team to support you to the fullest extent possible, helping to develop your business model and compliance.

Conducting regulated activities without the correct authorisation is a criminal offence, speak to one of our experts today for confidential and no obligation advice regarding FCA authorisation.

Interested in learning more about how you get FCA authorisation? Call us today by calling 0161 914 5727 to find out more.

Related News

Debt Counselling Authorisation