How we are regulated

Provident Financial Group as a whole is the subject of consolidated supervision by the Prudential Regulation Authority (PRA), a public regulatory body in the UK; this is because the group is the parent company of Vanquis Bank. The PRA sets requirements for the consolidated group in respect of capital adequacy, liquidity and large exposures. From April 2014, the Financial Conduct Authority (FCA) replaced the Office of Fair Trading (OFT) as the regulator of consumer credit in the UK. All consumer credit firms had to submit applications for authorisation to the FCA prior to set deadlines.

Vanquis Bank is authorised and regulated by the PRA and the FCA to operate its credit card business. Vanquis Bank must also comply with the Consumer Credit Act 1974 (as amended), and the rules of the FCA. Compliance is monitored by the FCA and complaints can be dealt with by the Financial Ombudsman Service. Vanquis Bank is also regulated by the PRA which sets requirements for Vanquis Bank relating to capital adequacy, liquidity and large exposures. Vanquis Bank was already an authorised firm but submitted its application for a variation of permissions in December 2014 and continues to operate under an interim consumer credit permission while awaiting formal approval of its application.

Provident home credit is authorised and regulated by the FCA in the UK. The products delivered by the Consumer Credit Division are governed by the terms of the Consumer Credit Act 1974 (as amended) and associated regulations, and the rules of the FCA and guidance made under them. The Consumer Credit Act 1974 (as amended) and the FCA rules lay out detailed requirements, and compliance is monitored by the FCA. Complaints can be taken to the Financial Ombudsman Service. Provident home credit is also a member of the home credit industry’s trade association, the Consumer Credit Association (CCA), and is subject to the CCA’s Code of Practice and Business Conduct Pledge. These are voluntary arrangements which reinforce the statutory and regulatory requirements. The Consumer Credit Division has obtained interim permissions under the FCA and submitted its application for full authorisation in May 2015. In addition, Satsuma Loans falls within the FCA's definition of ‘high-cost, short-term credit’ and, as such, is subject to additional FCA regulatory measures and restrictions.

In the Republic of Ireland (where home credit lenders are known as ‘moneylenders’) the regulatory framework consists of the statutory obligations set out in the Consumer Credit Act 1995, together with the requirements of the Central Bank of Ireland’s Fitness and Probity regime, the Consumer Protection Code for Licensed Moneylenders 2009, and the European Communities (Consumer Credit Agreement) Regulations 2010. Provident home credit is licensed to carry on business as a moneylender by the Central Bank of Ireland. It is also a member of the Consumer Credit Association (Republic of Ireland).

Moneybarn is authorised and regulated by the FCA. The FCA regulates the entire financial services industry and uses a set of rules and principles to ensure that customers are treated fairly by providers. As a leading member of the Finance and Leasing Association (FLA), the official trade body of the motor finance industry, Moneybarn is subject to the FLA’s Lending Code. The FLA promotes best practice in the motor finance industry through its Lending Code which sets out best practice in consumer lending. Like the Consumer Credit Division, Moneybarn has obtained interim permissions under the FCA and submitted its application for full authorisation in May 2015.

The group’s operating businesses continue to have a constructive dialogue with the FCA, responding to questions and information requests relevant to obtaining the necessary authorisations and change of permissions.