V12 Procedure Guide - Flipbook - Page 27
Product + Procedure Guide
2 PROCEDURE
2.1 Dealer and Broker
Regulatory Responsibilities
Regulatory Compliance
As an FCA-authorised business, your 昀椀rm is
responsible for its own compliance with FCA
rules and guidance on the conduct of regulated
activities, including relevant requirements
under the Consumer Duty.
Guidance on key rules for credit brokers can
be viewed on the FCA’s website here:
Credit Broking Rules
Whilst you remain responsible for compliance,
we are required to maintain suf昀椀cient oversight
of your regulated activities under FCA rules.
Your agreement with us, in conjunction with
this Guide, sets out all requirements regarding
adherence to relevant laws and regulations.
Responsibilities under the Product,
Services, and Fair Value Outcome rules
of the Consumer Duty
You have certain responsibilities and
obligations if you distribute our V12
Finance Products:
• You must have distribution arrangements
for the Products that:
• Avoid causing foreseeable harm
to customers.
• Support proper management of
con昀氀icts of interest.
• Ensure the needs, characteristics and
objectives of the target market are duly
taken into account.
• You must understand the Products, the
target market, and the distribution strategy
for the Products.
• You must ensure the Products will be
distributed in accordance with the needs,
characteristics, and objectives of the
target market.
• You must not distribute the Products if you
do not understand them suf昀椀ciently.
• You must not distribute the Products
to customers outside the identi昀椀ed
target market.
• If you set up your own or you implement a
speci昀椀c distribution strategy, this strategy
must be consistent with our distribution
strategy and our identi昀椀ed target market.
• You must regularly review your distribution
arrangements to ensure that they are still
appropriate and up to date.
• If you identify an issue with your Products’
distribution arrangements, you must:
• Make appropriate amendments to the
Product distribution arrangements.
• Inform us, and
• Take appropriate action to mitigate
any harm.
• If you apply any additional fees, charges,
commission, or other remuneration in
connection with the Products, you must
undertake your own fair value assessment
of these additional fees, charges,
commission, or other remuneration and
ensure that the Products continue to offer
fair value to customers.
• Where we enter an arrangement on V12VF
Products where you choose the interest
rate and/or the annual percentage rate
of charge or other pricing from a range
that you will offer the customer (and we
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