Earlier this year, the regulator brought together the Small Business Practitioner Panel (SBPP), Financial Services Compensation Scheme (FSCS), trade associations and credit providers to provide a suitable plan for firms who would like the option to use such a facility to pay their fees and levies.
Graeme Ashley-Fenn, director of contact, revenue and information management, commented:
" The fact that over 1,600 firms have already taken-up the scheme at this early stage in the invoicing process shows it is already a success. Our goal in setting-up the instalment deal was to offer firms greater flexibility to manage their finances. The popularity of the instalment plan demonstrates that our efforts were worthwhile".
The launch of the instalment system followed the FSA's consultation with the industry in January 2005 to gauge the level of interest for payment of fees and levies by instalments, and whether any credit provider would be interested in operating such a credit scheme.
The FSA organised negotiations between a number of credit providers, representatives from the SBPP and FSCS, and trade association representatives from the Association of Independent Financial Advisers (AIFA), Association of Mortgage Intermediaries (AMI), British Insurance Brokers' Association (BIBA), Institute of Chartered Accoutants in England and Wales (ICAEW) and Institute of Insurance Brokers (IIB) on 28 April 2005. A unanimous agreement that a solution to provide the FSA with a single payment, whilst offering a facility for firms to spread this cost using payment by instalment was found.
Premium Credit Limited have guaranteed "auto-acceptance" to all FSA authorised firms, and a competitive package for a payment period of ten months, (although repayment periods can be flexible if required). The trade associations within the industry working party have negotiated a more favourable rate for trade association member firms.
