Wageday Advance Limited - App for voluntary FCA requirements 16-06-2014

fermi

http://www.fca.org.uk/your-fca/documents/requirement-notices/wageday-advance-limited-vreq

Application for Imposition of Requirement

WAGEDAY ADVANCE LIMITED ("WDA"), Interim Permission Reference No. 623347

To: The Financial Conduct Authority (the "FCA")

FAO: Philip Salter

WDA hereby applies to the FCA for the imposition of the requirements on its permission set out in the Schedule below:

SCHEDULE

1. General

1.1 On 1 April 2014, the FCA took over the regulation of the consumer credit loan products to customersmarket from the Office of Fair Trading. WDA provides payday and short term. WDA is a connected company to SRC Transatlantic Limited {"STL") because they are part of the same group of companies. WDA and STL share a compliance function.

1.2 Information provided by WDA to the FCA has given rise to serious concerns in relation to WDA's and STL's compliance oversight. In particular, WDA and STL appear to lack sufficient resources to ensure that they treat customers fairly, including (i) a lack of a compliance monitoring strategy; (ii) no coherent quality assurance programme; and (iii) inadequate call monitoring. These failings give rise to an ongoing risk to WDA's and STL's customers.

1.3 WDA and STL have voluntarily engaged an independent person to conduct a review of their compliance function, and to make appropriate recommendations in order to ensure that WDA and STL meet the FCA's regulatory requirements. However, WDA and STL recognise that implementing these recommendations so that WDA and STL meet the FCA's requirements is likely to take a number of weeks.

2. Requirements

2.1 In addition to the action referred to in 1.3 above, WDA is required to appoint as soon as practicable an independent person to carry out all the compliance, monitoring and quality assurance functions for WDA in relation to all regulated activities carried on by WDA. These functions include, but are not limited to, the following:

2.1.1 Developing and implementing an interim compliance monitoring strategy for WDA to be agreed with the FCA.

2.1.2 Monitoring (using a proportionate and risk-based approach) of all regulated activity conducted by WDA relating (amongst other things) to:

• the marketing of loans,
• the making of loans,
• communications with customers including telephone calls, SMS, online, written and any other form of interaction with customers,
• the collection of payments including the use of continuous payment authorities,
• the application of fees and charges,
• the management of accounts in arrears, including the provision of appropriate forebearance to customers in financial difficulties, and
• complaints handling.

2.1.3 Collating reports in relation to the monitoring conducted. The reports should consider and identify whether WDA is meeting the FCA's regulatory requirements. These reports will be provided to WDA senior management and to the FCA on an ongoing basis.

2.2 WDA is required to implement appropriate and timely remedial actions in respect of all deficiencies, detriment and issues identified by the independent person.

2.3 WDA is required to obtain the prior approval of the FCA before appointing the proposed independent person.

Donald Francis Gayhardt

Director

For and on behalf of Wageday Advance Limited

Date: