FCA Update

Published: 19 October 2023

The Financial Conduct Authority (FCA) has in the past few months embarked on a mission to remove yacht brokers 'Credit Broking Limited Permissions Status' if you have declared no income from your credit broking activities in the past 18 months on your annual return, as and when it falls due.

We are aware that a number of yacht brokers will fall into this category with the current economic climate and the number of people using it to finance vessels slowing down.

Despite the fact that the FCA Handbook does not clearly state that you have to earn income from Credit Broking activities (just that you have to be have 'Credit Broking Limited Permissions') to introduce someone to a finance house, the FCA continues to try and challenge yacht brokers over their activities.

Peter Norris, ABYA Chairman said: "As an association we have challenged the FCAs activity in this area, which we see purely as a way of the FCA generating future income, by making brokers reapply to gain the appropriate permissions when this financing activity returns. We have so far assisted one broker gain a reprieve from loosing their limited permissions status as they had a record of all of the referrals that they had made in the past two years. This clearly demonstrated that they have been making referrals."

Therefore, we urge all brokers to ensure that they immediately look back through their emails etc and recorded details of the referrals they have made to all the different finance houses as soon as possible. This is so that you have the evidence to support your credit broking activities, in case you are challenged by the FCA. 

If you need any more information or advice please email: abyachair@abya.co.uk

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