In a letter of lender patrons, the National Association of Commercial Finance Brokers (NACFB) has warned that a failure by lenders to disseminate information fully could lead to breaches in Consumer Duty.
The new Consumer Duty regulations are due to come into force next week, on 31st July.
The NACFB highlighted important elements of the Financial Conduct Authority’s (FCA) Consumer Duty requirements.
It warned that, while some patrons had started proactively sharing key information with broker distributors, there are inconsistencies in the approach which could have significant repercussions.
James Hinch, head of compliance at the NACFB, encouraged lenders to make available the necessary information throughout their distribution chains.
He said: “Brokers play a pivotal role in facilitating transactions and providing finance to consumers.
“However, their ability to offer fair and impartial services relies heavily on the information they receive from lender manufacturers.
“By withholding essential details of product offerings – even from those not directly in scope – lenders may inadvertently be creating a knowledge gap that could lead to unfair relationships.”
