We are pleased to advise that 2XL has recently received full permission from the Financial Conduct Authority to carry out regulated credit broking activities. Holding permission is now mandatory and we believe it is a positive endorsement to our professional status. You and your clients can take comfort from the fact that we have been approved by the Financial Conduct Authority following a rigorous application process.
Prior to being regulated by the Financial Conduct Authority, credit broking firms only needed to hold a consumer credit licence which once issued was renewed on a five yearly basis. Previously the barriers to entry to commercial finance broking were very low and it was relatively easy for anyone to set up in business. This encouraged people from varied backgrounds to position themselves as “commercial finance experts’’ which often proved to be far from the case. Under the Financial Conduct Authority there is continuous supervision and therefore borrowers are afforded a much better level of protection.
The Financial Conduct Authority requires that treating customers fairly (TCF) is at the centre of everything we do; we now have published our 2XL TCF policy and this can be found on our website. Borrowers can now be assured that their interests come before those of the credit broker. 2016 will be the tenth anniversary for 2XL and we have since that time seen many of our competitors come and go; the new regulatory environment has seen many more brokers disappear.