Premium Credit announced that it has been awarded a three-year contract, via a competitive tender process, by the Financial Conduct Authority (FCA) to provide the official solution for FCA authorised firms, including insurance brokers, financial advisers, insurers, banks and other regulated businesses to spread the costs of their regulatory fees across monthly instalments. This contract begins in 2013, and runs through until 2016.
The tender was won after a rigorous process that included presenting to the FCA’s predecessor, the FSA and seven trade bodies covering UK banks, insurers, insurance brokers, professional advisors and small businesses. The changes associated with the move from FSA to FCA mean that this finance is now available for the regulated fees and levies invoiced by the FCA, Money Advice Service, Financial Ombudsman Service (FOS), Financial Services Compensation Scheme (FSCS) and Prudential Regulation Authority (PRA).
Roger Brown, Head of New Markets for Premium Credit, commented on the appointment: “Premium Credit has demonstrated a history of excellent service to the FSA, and we have used their feedback over the years to develop our product offering for regulated businesses. This will also shortly lead to a number of new developments including online digital application and signature.”
“Businesses regulated by the new FCA will face steep rises in regulatory fees going forward:
- Financial Advisers: Fee increase of 13%
- Fund Managers: Fee increase of 15.7%
- Mortgage Brokers and Home Finance Providers: Fee increase of 11.7%
- General Insurance Brokers: Fee increase of 14.6%
“Premium Credit can provide whatever funding is needed to assist these businesses in preserving working capital by spreading these increased fees over the license period. This service has never been more relevant than today when SME’s in particular face extreme challenges in securing financing from banks in these tough economic times. Our service provides an unsecured solution, straightforward applications process, and quick approval times.”
