ABYA – HUGE WIN OVER FCA LEGISLATION
Published: 17 November 2023
The last couple of years have seen ABYA and CGI Finance challenging the FCA’s interpretation of Secondary Credit Broking legislation.
Up until now, Brokers have been subject to strict FCA’s legislation – giving them access to only one of two Credit Broking options:
- Option 1 – Goods that are your own – requiring FCA Limited Permission Credit Broking status
- Option 2 – Goods that are not owned by the brokerage – requiring FCA Full Permission Credit Broking status
Unsurprisingly, this has meant brokers have had to go down the route of obtaining Full Permission status to introduce finance on brokerage boats. Which has led to extensive bureaucracy, including: more checks, lengthy paperwork, and let’s not forget the expense. All of which has caused much stress for brokers – personally and for their businesses. For example, without Full Permission, brokers have been prohibited from introducing customers that have required finance to buy boats that the broker is selling on brokerage - resulting in lost sales.
However, now and after a huge win for ABYA and CGI Finance, brokers will only need Limited Permissions – stripping away a huge amount of unnecessary bureaucracy. Visit the FCA website to find out what the new Limited Permission means and who can apply.
According to contacts, it has taken “A task force of FCA staff to review and finally agree with our interpretation of the FCA Handbook” and too much time and money for both parties. The FCA have in fact gone to the extent to thank us, ABYA and CGI Finance, for highlighting the misinterpretation of the FCA Handbook legislation.
Kris Garner, CGI Finance, wrote to ABYA Chairman, Peter Norris to say - “This is VERY good news. Well done on this win, well done on your fight and determination to keep challenging and changing so many of the aspects and influences that surround the marine industry. The industry is grateful of all the support you and ABYA provide”.