7 reasons to choose FCA authorised intermediaries for business finance

Intermediaries, such as ourselves, or finance brokers, play a vital role in helping businesses to obtain finance.

But if you require business finance and intend using an intermediary to help, what things should you take into account before choosing a firm to represent you?

Before you rush head-long into a decision, one very important point to check is whether the firm you plan to use is authorised by the Financial Conduct Authority (FCA).  The FCA is the regulator for financial services firms and markets in the UK.

Here are 7 reasons why it’s important to use an intermediary firm that is authorised by the FCA.

1. Personnel must have the relevant experience to carry out their role.
2. They must be competent and act with integrity.
3. The firm must carry out their work with skill, care, diligence, and observe proper standards of market conduct.
4. It must operate without conflicts of interest.
5. It must be trustworthy and treat their customers fairly.
6. The firm must have effective management and control processes.
7. It must demonstrate that it is creditworthy and solvent and can meet all debts as they fall due.

As you can see from this list, intermediaries who are authorised by the FCA must be able to demonstrate that they know what they are doing.

However, it is interesting to note that an intermediary does not have to be authorised and regulated by the FCA if they only act for limited companies.  Many choose this route and so there are a lot of consultants and brokers operating without the controls and checks that govern the activities of regulated firms.  This means they can be in business without having to prove they are properly trained to do what they do.

Becoming authorised by the FCA is not a walk in the park!

The reason why relatively few consultants and brokers push to gain FCA authorisation is because it is a tortuous and demanding process!  An authorised firm must be able to demonstrate that they meet all the 7 conditions above, before the authorisation is awarded.

Because we appreciate the importance of doing things in the right way, we have obtained FCA authorisation because it sends a positive message, and also reassures those who deal with us that we are skilled and qualified to do what we say we can do – whoever we are acting for.

Russell Snowdon
Managing Director
Independent Banking Consultants