SUP 16 Annex 38D Notes for completion of data item relating to relevant ancillary credit firms

Select all that apply.

See PERG 2.7.7EG for details of the activities that fall within credit broking .

Examples of credit broking activities generally include, but are not limited to, the following (whether or not the credit broking firm earns a fee):

A - A price comparison website that introduces customers to third-party lenders to take out a loan.

A - A supplier of goods or services, such as a high street retailer or a dentist that introduces the customer to a third-party lender to pay for the goods or service.

B - A motor dealer that introduces customers to a finance provider to facilitate the hire of a vehicle under a consumer hire agreement .

B - A supplier of machinery that introduces the customer to a hire/lease company so they can hire/lease the equipment from that company under a consumer hire agreement .

C - A motor dealer (or other type of supplier of goods or services) that introduces customers to a third-party company who then introduces that customer to a lender or a hire/leasing provider.

C - An insurance intermediary who introduces a customer to an insurer who then introduces that customer to another third party company to pay their insurance premiums via a credit agreement .

If the activities undertaken using the credit broking permission relate only to credit agreements secured by a legal or equitable mortgage on land and not any other credit agreement or consumer hire agreement , select ‘X - None of the above’. You will then only need to complete 102A; and not the remainder of Section 1: Credit broking of this return.

Select one option only.

Please answer in respect of credit broking activity undertaken in the past 12 months (if applicable). If not applicable, then please answer in respect of credit broking activity your firm intends to undertake within the next 12 months .

The selections made should relate to agreement types for which the reporting firm’s credit broking activities constitute regulated activity .

Please answer in respect of credit broking activity undertaken in the past 12 months (if applicable). If not applicable, then please answer in respect of credit broking activity your firm intends to undertake within the next 12 months.

Select all that apply.

A - Finance for specific goods or services other than insurance premiums

This includes fixed-sum credit and running-account credit , the use of which is restricted to the financing of goods or services other than insurance premiums. It also includes consumer hire agreements . It does not include credit agreements which are secured by a legal or equitable mortgage on land .

B - Finance for insurance premiums

This includes fixed-sum credit and running-account credit , the use of which is restricted to the financing of insurance premiums.

C - Credit agreements secured on land 

This includes any credit agreements secured by a legal or equitable mortgage on land .

D - Cash loans

This includes any fixed-sum credit agreements which are not restricted to the financing of goods or services, and are not secured on land .

E - Credit cards

F - Overdrafts

W - Any other credit agreements 

This includes credit agreements which are not one of any of the above agreement types.

Total number of introductions of individuals made to prospective lenders , regardless of outcome.

For firms that undertake lead generator activity, this includes the number of customers whose contact details were passed onto a lender or credit broker .

Select all that apply

Please answer in respect of credit broking activity undertaken in the past 12 months (if applicable). If not applicable, then please answer in respect of credit broking activity your firm intends to undertake within the next 12 months.

Select all that apply.

Select the good(s) that your firm provides, in respect of which you may broker credit for.

If your firm does not supply goods , and acts purely as a broker in this regard, select ‘X - Our firm does not supply goods to individuals ’.

Select all that apply.

Select the service(s) that your firm provides, in which you may broker credit for.

If your firm does not supply services, and acts purely as a broker in this regard, select ‘X - Our firm does not supply services to individuals ’.

Select all that apply.

A - Personal contract purchase (PCP)

A hire-purchase agreement which includes a guaranteed minimum future value of the motor vehicle which is set out as an optional additional repayment at the end of the agreement, with the option for the borrower(s) to return the motor vehicle instead of making that repayment.

B - Hire-purchase (HP)

A hire-purchase agreement that is not a personal contract purchase.

C - Conditional sale

A conditional sale agreement .

D - Any other credit 

A credit agreement which is not one of any of the above credit agreement types.

E - Consumer hire

A consumer hire agreement .

Total number of introductions of individuals made to prospective lenders , regardless of outcome.

For firms that undertake lead generator activity, this includes the number of customers whose contact details were passed onto a lender or credit broker .

Total number of introductions of individuals made to prospective owners , regardless of outcome.

For firms that undertake lead generator activity, this includes the number of customers whose contact details were passed onto an owner or credit broker .

Select all that apply.

A - Hire-purchase (HP)

A hire-purchase agreement .

B - Conditional sale

A conditional sale agreement .

C - Any other fixed-sum credit 

A fixed-sum credit agreement which is not one of any of the above agreement types.

D - Running-account credit 

A Running-account credit agreement

E - Consumer hire

A consumer hire agreement .

Total number of introductions of individuals made to prospective lenders , regardless of outcome.

For firms that undertake lead generator activity, this includes the number of customers whose contact details were passed onto a lender or credit broker .

Total number of introductions of individuals made to prospective owners , regardless of outcome.

For firms that undertake lead generator activity, this includes the number of customers whose contact details were passed onto an owner or credit broker .

Select all that apply.

‘Within the same group’ refers to a company within the same group structure or another branch.

‘Unrelated’ means not part of the same corporate group structure.

‘Brokers’ in this instance means those firms that your firm introduces to.

Total income received from individuals , credit brokers , lenders , owners or vendors for your credit broking activities.

This includes commissions, fees from individuals and any other income received.

Total number of individuals introduced regardless of outcome.

For firms that undertake lead generator activity, this includes the number of customers whose contact details were passed onto a lender or credit broker .

Total income received from individuals , credit brokers , lenders , owners or vendors for your credit broking activities.

This includes commissions, fees from individuals and any other income received.

Total number of individuals introduced regardless of outcome.

For firms that undertake lead generator activity, this includes the number of customers whose contact details were passed onto a lender or credit broker .

Total number of individuals in respect of whom your firm engaged in a credit broking activity, regardless of outcome.

For firms that undertake lead generator activity, this includes the number of customers whose contact details were passed onto a lender or credit broker .

Total number of individuals in respect of whom your firm engaged in a credit broking activity, regardless of outcome.

For firms that undertake lead generator activity, this includes the number of customers whose contact details were passed onto a lender or credit broker .

Total number of individuals in respect of whom your firm engaged in a credit broking activity, regardless of outcome.

For firms that undertake lead generator activity this includes the number of customers whose contact details were passed onto a lender or credit broker .

Total number of individuals in respect of whom your firm engaged in a credit broking activity, regardless of outcome.

For firms that undertake lead generator activity this includes the number of customers whose contact details were passed onto a lender or credit broker .

Select all that apply.

Where an individual has agreed and accepted the terms and conditions and has made a payment to your firm such as an initial deposit or direct debit set up.

For cross-channel sales journeys, this is where the bulk of the transaction takes place.

Where a sale has been made through more than one method – eg, telephone and then post – report the channel where the product choice was made.

‘Sales staff’ in this instance is any staff member of the firm that interacts with individuals and sells credit agreements . The staff member may not be directly employed to do so, but this forms part of their role.

Select one option only.

‘Sales staff’ in this instance is any staff member of the firm that interacts with individuals and sells credit agreements . The staff member may not be directly employed to do so, but this forms part of their role.

‘Full-time equivalent (FTE)’ is a unit of measurement used to compare the number of hours worked by staff in a business. FTE is calculated by comparing a member of staff’s average hours worked to the average hours of a full-time member of staff. For example, if a full-time member of staff works 40 hours per week, and a part-time staff member works 20 hours per week, the part-time staff is counted as 0.5 FTE.

If you are a sole proprietor with no additional staff, enter ‘0.00’.

Select all that apply.

‘Fixed commission’ is commission based per unit or for meeting sales targets.

‘Variable commission’ is commission based on a percentage of a product value.

Select one option only.

Please answer in respect of relevant activity undertaken in the past 12 months (if applicable). If not applicable, then please answer in respect of activity your firm intends to undertake within the next 12 months.

‘Money advice’ means general advice on money-related issues such as budgeting, utility bills or council tax.

‘Debt advice’ means giving an opinion as a guide to action to be taken, in this case the liquidation of debts. It either explicitly or implicitly steers the individual to a particular course of action as set out in PERG 17.5G .

Should you refer individuals for a debt solution to another firm in the same umbrella group of companies as your own firm , select ‘C - Money/debt advice and debt solutions , in which the debt solution is provided by another firm ’.

Include all individuals who approached your firm for money/debt advice and/or a debt solution .

‘Approach’ means engagement with a firm through any one or more of the following channels:

• webform;

• live/web chat;

• chatbot;

• email;

• online/digital advice tool

• instant messaging (eg, WhatsApp);

• video conferencing or chat;

• telephone;

• SMS;

• your own physical premises;

• individual’s home or dwelling; or

• other non-trade premises.

Include all individuals who approached your appointed representatives for money/debt advice and/or a debt solution .

‘Approach’ means engagement with a firm through any one or more of the following channels:

• webform;

• live/web chat;

• chatbot;

• email;

• online/digital advice tool

• instant messaging (eg, WhatsApp);

• video conferencing or chat;

• telephone;

• SMS;

• your own physical premises;

• individuals’s home or dwelling; or

• other non-trade premises.

Provide values in respect of ongoing fees received in the reporting period – eg, a monthly fee received for a debt solution .

Include all fees received in the reporting period, including those for debt solutions that have been entered into prior to said period.

Provide values in respect of commission received, in which the debt solution is administered by your appointed representatives .

Include any revenue received via Fair Share.

Provide values in respect of ongoing fees received in the reporting period – eg, a monthly fee received for a debt solution .

Include all fees received in the reporting period, including those for debt solutions that have been entered into prior to said period.

Select one option only.

A ‘contact centre’ is a dedicated team/operation for answering phone calls/queries for debt or money advice over the phone.

Section 2.7.3: Debt adjusting and/or debt counselling – chatbot 

A real-time online communication tool that allows users to interact with a chatbot (a computer program that simulates and processes human conversation)

Referred as introduced to your firm by another firm for the purpose of obtaining money/debt advice and/or debt solutions .

Select all that apply.

Referred as introduced to your firm by another firm for the purpose of obtaining money/debt advice and/or debt solutions .

Select all that apply.

Select all that apply.

‘Employed’ includes contractors or those directly employed by your firm.

Enter the total value of all the relevant debts under management that are used to calculate the firm’s current prudential resources requirement.

This should be the figure calculated at the latest accounting reference date , or, if there has been a change in the value of all the relevant debts under management of more than 15%, the recalculated figure.

See CONC 10.2.5R to CONC 10.2.10G and CONC 10.2.13R to CONC 10.2.14R for further information.

Enter whichever figure is higher out of:

• £5000; and

• the variable prudential resources requirement calculated based on the value of relevant debts under management outstanding entered in element 270A (Total value of relevant debts under management that are outstanding).

See CONC 10.2.5R , CONC 10.2.8R and CONC 10.2.11G to CONC 10.2.12G .

It is not permissible to answer ‘0’ for this question, even if ‘0’ was entered against 270A (Total value of relevant debts under management that are outstanding), as the minimum prudential resources requirement in CONC 10 is £5,000.

Select one option only.

Your firm is not subject to a requirement imposed under section 55L of the Act stating that it must not hold client money, or such a requirement to the same effect.

This section of the data item relates to money which your firm receives or holds on behalf of a client in the course of or in connection with debt management activity only.

Report the highest total amount of client money held during the preceding reporting period.

Monetary values must be a sterling equivalent GBP (£) reported to 2 decimal places.

Record zero amounts as 0.00.

Select one option only.

As described in CASS 11.2.3R .

When entering this data, firms should report the data according to 1 of 4 specified time bands according to the length of time for which the client money has remained unallocated:

• 6-29 days ;

• 30-59 days ;

• 60-90 days ; and

• 90+ days.

This would align with a similar question on unresolved client money items in the client money and asset return (CMAR) for investment firms (see Q24 in the CMAR) set out in SUP 16 Annex 29R (Client Money and Asset Return).

Select all that apply.

See PERG 2.7.20KG for details of the activities that fall within providing credit information services .

Select all that apply.

A ‘subscription term’ is the inherent commitment length for subscriptions linked to the service you provide.

Select all that apply.

A ‘subscription term’ is the inherent commitment length for subscriptions linked to the service you provide.

The average length of time from when an individual signs up to the subscription service to when they cancel, in respect of agreements cancelled. Set out your response in days .

Do not count those individuals that cancelled within a cooling-off period.

The average length of time from when an individual signs up to the subscription service to when they cancel, in respect of agreements cancelled. Set out your response in days .

Do not count those individuals that cancelled within a cooling-off period.

Select all that apply.

For credit broking , channels used for the marketing of financial services, goods , or services in which the use of credit is promoted.

For debt adjusting and debt counselling , channels used for the marketing of debt and money advice and/or debt solution services.

For providing credit information services , channels used for the marketing of services in which credit information is provided.

If your firm does not specifically do any marketing in relation to the above regulated activities , select ‘X - None of the above’.

Total amount of revenue received from the following credit-related regulated activities :

• credit broking ;

• debt adjusting ;

• debt counselling ; and

• providing credit information services .

For example, a firm sells a product for £1,000 after referring the individual for financing. The firm receives £50 commission for the credit broking referral, as well as the £1,000 for the product sale. The firm would report its credit broking -related revenue as £50.

£0 can be reported if no income is derived from the permissions that the firm holds. For example, if a not-for-profit body provides debt and money advice services free of charge and receives no other revenue, it can report £0. Equally, if a retail firm holds the permission of ‘ credit broking ’ only and receives no commission or financial incentives from the finance companies it refers to, nor does it charge for the referral, it can report £0. In this scenario, the retail firm will get paid for the item in full, but for the specific activity of credit broking , no income was received. Selling of goods in itself is not a regulated activity .