Brokers face ‘fair value’ dilemma on premium finance amid interest rate rises
Brokers are faced with a dilemma as interest rates rise. The Financial Conduct Authority’s demand for them to offer ‘fair value’ products is at the forefront of their minds when they decide how to deal with the customer. Saxon East reports.
For brokers dealing in premium finance, life doesn’t get any easier. In the past year, they’ve been navigating FCA scrutiny that has escalated premium finance compliance requirements.
A tricky process for brokers still taking an annual percentage rate of more than 30% – a threshold that many view as the limit of what they should be charging.
30%Brokers are still taking an annual percentage rate of more than 30%
This regulatory scrutiny is compounded by rising interest rates coming
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