FSA - do I need to be regulated?

[mhc]

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I'm pretty new to all this so please bear with me.

My new site to be launched soon will have a Finance section, where I want to put generic information on loan types (just descriptions, not advice) with various affiliate links alongside.

Just to cover myself, I enquired with the FSA about my proposal:

'I will not be selling any financial products directly from my site or business address, however I do intend placing on the website, hypertext links, phone numbers and graphics which will open new pages on the lenders or insurers websites, who are effectively advertisers on my website.'

Their reply referred me to the FSA Perimiter Guidance Manual, which despite reading the relevant sections still doesn't seem conclusive to me, however one comment in their written response concerns me:

'If you are being paid a flat fee for advertising space then you would not need FSA Authorisation, however if you receive commission for all sales that are made via the links on your site, then you could be deemed to be acting as an introducer, depending upon the types of products being sold.'

So do I need Authorisation? Am I being over-cautious?

Any words from the Wise please.

[Barry]

IMO you are being over the top slightly - but only slightly. Just make sure you dont mention any figures and stick to using network approved write-ups or banners that auto update and you should be fine.

Other people may know more as I am not big into finance.

[jo_1011]

As long as your not reccommending anyone then you will be fine.

You should only be classed as an introducer if you advise people to choose a specific insurance company.

[123debtsolutions]

You don't need FSA.
You will need Data Protection Licence and depending on how you are being paid you may need CCL.

Good Luck.

[HarveyC]

Why would he need a DPL if he's presumably not collecting any (personally identifiable) data?...

[mhc]

Thanks for the advice so far.

Well... another part of the site is lead generation for retailers, so I suppose I do need a DPL?

Delving into the OFT it looks like I need a CCL Cat C as I do want to offer exclusive promotions with niche insurers, plus links for finance, so it looks like I'll have to do it, unless anyone can point me to something that says I don't have to...

Cheers

[tbp]

I`ve looked into this as well (although done nothing as yet lol).

It does seem like if you are generating leads you need a CCL, just to make sure you are covered. Its only £130, so it's not a major cost. You`ll also need to register under the Data Protection Act, as you're storing peoples details, but again thats only £35.

So a total of £165, which should cover you totally, and you should be able to easily recoup that over a year.

[mhc]

Unfortunately, as I have set up a limited company, I would have to pay £335 for the application plus a 'contribution' which is mandatory for funding the Ombudsman of £150, making £485 for the CCL according to the OFT.

Think I'll do the DP one first...

[RailyPhill]

Hi MHC

I've chatted about compliance a few times now on this forum, let’s see if I can help. I've had a quick look at your site - so I'm guessing your Financial Promotions will be regarding Motor Finance which is OFT jurisdiction, unless you’re discussing payment protection or GAP policies and then you’re into the FSA.

My field of experience is residential finance first and second charge, but I may be able to point you in the right direction. I would firstly email the merchant/company you’re wishing to promote and speak with their compliance people about what you are wanting to do. My belief is that if you will be receiving commission for the introduction you will either need your own CCL or be incorporated in under their CCL as “the firms” appointed introducer.

Word of Warning!!

Affiliates Networks / platforms such as Leadbay etc… cannot guarantee your compliance. That responsibility falls with you and your relationship with the merchant / firm.

[simonb]

Any affilaite who signs up to our affiliate programme has access to a document titled "Guidance on regulated activities and financial promotion in the UK"

You are right though ultimate liability for your web site lies with you. We have however spend hundreds of thousand of pounds on complaince advice in ensuring our complete process is compliant.

[zinc]

Unfortunately, as I have set up a limited company, I would have to pay £335 for the application plus a 'contribution' which is mandatory for funding the Ombudsman of £150, making £485 for the CCL according to the OFT.

Think I'll do the DP one first...

It's only £500 just do it... the fine could be 5x that (just a guess). In the finance market a couple of loan apps could pay for it. Chances are you will probably need one as you progress anyway.

Better safe than sorry

[mhc]

Yup, I will sort it. Have done the DP register already. Playing safe with the Finance page for the time being.

If you want to put a relevant category (I don't want to be in 'camping') on Fizz I'll submit

[internetheaven]

As long as your not reccommending anyone then you will be fine.

You should only be classed as an introducer if you advise people to choose a specific insurance company.

Completely untrue. If you receive commission for the sale of a financial product then you have to submit to FSA regulation. Ask any FSA compliance company or the FSA themselves. You do not have to provide advice or know anything about the person clicking on the ad to be classed as an introducer.

It's stupid ... but that's the FSA for you. More interested in generating fees for themselves than actually sorting out bad companies.

[sirus21]

Completely untrue. If you receive commission for the sale of a financial product then you have to submit to FSA regulation. Ask any FSA compliance company or the FSA themselves. You do not have to provide advice or know anything about the person clicking on the ad to be classed as an introducer.

It's stupid ... but that's the FSA for you. More interested in generating fees for themselves than actually sorting out bad companies.

Can anyone give me any ideas on the cost/time involved in becoming FSA registered? I run a insurance introduction site but I would like to offer quotes.

[internetheaven]

Can anyone give me any ideas on the cost/time involved in becoming FSA registered? I run a insurance introduction site but I would like to offer quotes.

I'm about £4000 a year and it takes about a week of my life with pointless forms, letters and phone calls. I got dragged in to their lowest regulatory fee section, if you're offering quotes they'll probably charge you more ... they don't DO anything more ... they just get to charge you more ...