The first set of UK regulatory permissions have been granted to UK brokers working through Hitachi Capital Business Finance’s regulatory training scheme.

Hitachi said in a statement it had been working with around 200 introducers with 14 sessions to date, with the first few brokers receiving permissions from the Financial Conduct Authority (FCA) at the start of December.

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The first two brokers to receive full FCA permission were Anglo Scottish and George Rudnick of Direct Asset Capital, with RCD Finance and Clockwork Capital in the process of obtaining permissions.

A brief version of the checklist provided to Leasing Life demonstrated the requirements that the regulatory regime is demanding of brokers operating in the consumer asset finance space:

  • "Know your customer’ check completed
  • The customer has been provided with a privacy notice
  • If refinancing existing equipment, the sustainability of the finance has been reviewed
  • The nature of the services that the firm provides has been explained
  • If the customer has been introduced to the firm, reasonable steps taken to ensure introduction met regulatory requirements
  • Any fees payable by the customer to the broker have been notified
  • The product’s sustainability has been reviewed
  • Made clear equipment can also be bought with cash
  • A search of the market to the extent stated has been carried out
  • Information on complaints procedure made available

Gavin Wraith-Carter, general manager at Hitachi Capital Business Finance, said: "The feedback received to date suggests that this type of service is both informative and essential to help brokers navigate the complexities of FCA compliance requirements.

"Our support is ongoing and we have produced the comprehensive checklist and shared it with the NACFB, FLA and other funders in the hope that it becomes standard practice for brokers to refer to when arranging finance with their customers.

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