The announcement follows the FSA’s detailed negotiations between the Small Business Practitioner Panel (SBPP), Financial Services Compensation Scheme (FSCS), trade associations and credit providers.
As a result, one of the providers, Premium Credit Limited, will be able to provide a suitable instalment plan for firms wishing to use the facility by which to pay their fees and levies.
It has guaranteed ‘auto-acceptance’ to all FSA authorised firms and a competitive package for a payment period of ten months. The facility is aimed to be in place for firms from June this year.
Graeme Ashley-Fenn, director of contract, revenue and information management at the FSA, said: “We understand how important it is for firms to manage their cashflows and have the option to fund such payments by instalments.
“Equally this solution enables the FSA to continue to receive payment of the single (FSA/FSCS/FOS) invoice and to contain our overall administration costs.”
David Severn, director general at the Association of Independent Financial Advisers (AIFA), said: “On behalf of AIFA and AMI I am glad that we have been able to secure for our members such a good package with Premium Credit.
“The instalment plan offers guaranteed acceptance and our members will get an interest rate which is competitive, preferential and hassle-free.”
Simon Moran, chief marketing officer at Premium Credit Limited, commented: “Working in harmony with the trade associations within the working party we have identified the bespoke requirements of all regulated firms and have created a straightforward, cost-effective solution that is available to all, regardless of size.”
London-based sole broker Roy New applauded the decision. “Well done AIFA, well done AMI, well done all,” he said
