..and we’ll make sure your salary sacrifice scheme complies with FCA regulations and you have the necessary policies and procedures in place.
Many employers, with the assistance of their product provider, operate schemes enabling their employees to hire or purchase goods in return for a reduction in salary. These schemes are popular because they give employees access to new cars, cycles and electronic products with the potential benefit of reducing tax and national insurance payments. It is also a simple, cost effective way of acquiring products through a trusted source. Employers are able to offer an improved benefits package which can improve staff satisfaction and retention levels.
While these schemes are effectively administered by the product providers, one issue that’s not always clear is; ‘Do we need to be regulated by the FCA for consumer credit activities?’ Many schemes clearly need to be regulated as the employee signs a regulated credit agreement. Other schemes operate without a regulated agreement in place and therefore are viewed by many as an activity not requiring FCA regulation. However, they ‘look and feel’ like a consumer credit / hire agreement with terms, conditions and penalties usually found in regulated agreements. The FCA has given an exemption to the ‘cycle to work scheme’ where the value of the goods are up to £1,000, but no other salary sacrifice scheme has been exempted.
Product Partnerships makes sure employers running such schemes have the correct permissions to be compliant. As an Appointed Representative of PPL, you operate under our oversight and we ensure you act compliantly at all times and are correctly regulated.
If you already operate a salary sacrifice scheme that requires FCA regulation and you are regulated by the FCA, our compliance programme will ensure you do not breach FCA rules and guidelines. Remember, once you are regulated, you must have in place a compliance monitoring programme, compliant complaints procedures and regulatory training. You also need to ensure you have the required management information to assess how the scheme is meeting customer needs and enabling you to report accurate figures to the FCA.
Whether you are directly authorised or become an Appointed Representative of Product Partnerships, working with us will ensure you don’t breach FCA regulations and enables you to concentrate on your core business, and not have to develop an internal FCA compliance function. You can find out more about how we can help by calling 01274 921234 or click here and email us your details.