In Focus Consumer Credit
The importance of getting qualified
High quality qualifications are a crucial part of the environment in a highly regulated sector like credit and collections
John Somerville Relationship Director, The London Institute of Banking & Finance
jsomerville@libf.ac.uk
The growth in the debt collection industry led to a change in regulator from the Office of Fair Trading (OFT) to the Financial Conduct Authority (FCA) in April 2014. As a consumer-centric organisation, the
FCA’s strategic objective is ensuring that financial markets work well so that consumers get a fair deal. This key aim is supported by three operational objectives: l To secure an appropriate degree of protection for consumers l To protect and enhance the integrity of the UK financial system l To promote effective competition in the interests of consumers Martin Wheatley, former chief executive
of the FCA, stated in April 2014 that “strong sectors require strong regulation – and as the consumer credit market has grown, so the importance of forward-looking oversight has escalated in lockstep, with more potential risk to manage”.
A qualification In consultation with our customers working in debt-collection industry, in 2012, we sought opinion on whether a recognised
debt-collection qualification which reflected the new regulatory landscape was needed and if so, what demand there would be for it. From the outset of the project, our
objectives in creating a new benchmark qualification for the debt-collection industry were:
l Ensure that delivery of learning and development activities benefitted clients, individuals and society l Facilitate innovative approaches to education, training, and staff welfare and development
We sought opinion on whether a recognised debt-collection qualification which reflected the new regulatory landscape was needed and if so, what demand there would be for it
l To meet clearly defined and measured client needs l Ensure the learning and development activity was fit for purpose and resources were used effectively and efficiently
Enjoy 10% off our benchmark qualification in the debt collection sector
libf.ac.uk/ccr 24
www.CCRMagazine.com
Consultation During the 18-month period leading up to FCA regulation of the debt-collection industry, key staff from banks, regulators, debt-advice charities, and educators were drawn together to obtain insight and opinion to ensure the qualification would encompass the practical skills and industry knowledge required to excel in the industry. The project group was asked to consider
the following questions: lWhat would the new regulatory landscape look like? l How could a qualification be designed to reflect the new regulatory approach? lWhat academic level should the qualification be? lWho would the new qualification be suitable for? lWhat were the key learning outcomes? l How should it be delivered? l How should the new qualification be assessed? The results of the consultation confirmed
our initial thoughts that although traditional on-the-job training had its place. There was demand within the debt-
collection industry for an externally accredited qualification that would independently test collections staff’ knowledge and skills in the new FCA-regulated environment.
December 2018
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