Appointed Representative or Directly Authorised? It has been the subject of heated debate since the FCA took charge of consumer credit application in April 2014. Even now, two years on, credit brokers still hold conflicting views on which exactly is the best option to comply with FCS regulations. In fact, in this month’s NACFB magazine AR versus DA was the main cover story of the issue and inside the magazine was a four page feature discussing in great depth all the pros and cons of each side of the FCA regulations debate.

Adam Tyler, Chief Executive of the NACFB, stated that only 10% of its members were ARs, however he expects this figure to rise to 20%.

Pros and cons of FCA regulations debate.

The main crux of the debate is whether it is better and more commercially prudent for brokers, particularly smaller ones to allow a principal company to look after all the details on their behalf and to alleviate the burden of responsibility. Indeed, the article goes on to say that a DA firm could see 20% of its working month eaten up as a result of adhering to FCA regulations.

One Managing Director of a successful independent broker business went as far as to say that life was much easier being an AR in a market burdened with growing controls.

Also as part of the article the magazine interviewed Nick Simpson, Managing Director of Asset Finance Solutions (AFS), our parent company who acts as principal for all our own ARs. He explained that he continues to see record numbers of both new and established brokers take up the firm’s AR offering.

“They are looking to take full advantage of our total compliance solution rather than opt for direct authorisation,” Nick said.

“We help individuals via our systems and processes to not only trade compliantly, but even more importantly, evidence it.”

“ The compliance capacity of our business provides ARs with the comfort of knowing they are in safe hands and operating in their optimum working environment.”

Obviously opinions do vary, but it is becoming increasingly clear that if you are a smaller broker who feels overwhelmed by the sheer amount of time and expense involved in traveling the DA route, then AR is certainly something that you should investigate.

Here are two quotes from the article:

Steve Hoskins of The Partnership, an AR of Synergy Commercial Finance Ltd

“The depth and strength of the compliance offering through Synergy was of particular interest, along with access to a significant whole-of-market panel of funders. This gives us the maximum time to support our clients’ needs, safe in the knowledge that we are operating within the requirements of the FCA.”

Chris MacManus of MacManus Asset Finance Ltd, an AR of AFSUK

Before I decided to join AFSUK, I found that there were occasions when, as a small independent broker, I struggled to obtain the best rates for my clients. At the time, I had access to around 15 funders. After deciding to join AFSUK, my lender panel instantly leapt to over 50 and, now, whenever I approach any of them, I really feel that in addition to highly competitive rates, I also receive privileged red carpet treatment.”

No doubt if you are operating in the broker market you will already have an opinion, but if you would like to discuss the benefits of AR in greater detail – and without obligation –please call us on 01904 481 786. You can also email us at: or you can send us an online message using the form on our Contact us page.

AFS Group, Asset Finance Solutions & AFS Compliance
  • Greenbank Court, Challenge Way, Greenbank Business Park, Blackburn, BB1 5QB
  • Tel: 01254 958777
Synergy Commercial Finance
  • Lindum Business Park, York Road, Elvington, York YO41 4XR
  • Tel: 01904 481786