Disbursement Funding – Being a Credit Intermediary

A great deal for your client – that’s no big deal for your firm

By Matthew Pascall, Senior Underwriting Manager, Temple Legal Protection

Alongside the numerous benefits of being able to offer Temple disbursement funding, it is understandable some solicitors may be concerned at the thought of being a credit intermediary when providing this service to their clients. In this article we provide straightforward guidance on what is required and what you have to do when taking on a role that has benefits both for your firm and clients.

Normally providing information about credit is an activity regulated by the FCA. However, under the terms of an exemption, solicitors can provide credit information without the need to obtain any particular authorisation or consent from the FCA.

How does this work?

The exemption applies so long as: –

  1. The giving of the credit information arises “… out of, or is complementary to, the provision of a particular professional service to a particular client…” and;
  2. Your firm is registered with the SRA as an “Exempt Professional Firm.”

When you act as a credit intermediary to enable your clients to access Temple’s disbursement funding, you are providing credit information – but doing so in a way that is complementary to the provision of advice to your client about their case. So, as long as your firm is an exempt professional firm registered as such with the SRA, that’s it – you can offer this valuable service to your clients.

It’s not ‘too good to be true’, it’s straightforward and here’s the question and the answer you’ve probably thinking – ‘How does my firm register as an “Exempt Professional Firm”?’

All you need to do is to tell the SRA about the financial services your firm provides, including acting as a credit intermediary. The application process is explained on the SRA’s website and you can access the relevant form and information here:

You must of course satisfy yourself that you are complying with your SRA obligations. You can find helpful information at: https://www.sra.org.uk/solicitors/resources/financial- services-rules/regulation-consumer-credit-activities/

What do we ask you to do?

Temple Legal Protection Limited and Temple Funding are both authorised and regulated by the Financial Conduct Authority. We will provide you with a set of simple instructions to follow.

In outline, we ask you to explain to your client how the funding works and provide them with two ready-prepared documents – our Pre-Contract Credit Information document and an Adequate Explanations document. We then ask you obtain your client’s signature on the credit agreement and for you to sign it on our behalf.

If you become a Temple Legal Protection litigation insurance Coverholder, you are then able to insure cases without referring back to us under delegated authority. This means you can have access to disbursement funding available for all your clients and manage the process on our behalf.

Our disbursement funding meets your clients’ needs and takes away the strain of paying for disbursements with a low interest rate of only 10%. This can unlock cases that may otherwise not be brought or run to their optimum full potential.

If you have any further questions about Temple disbursement funding please contact Matthew Pascall on 01483 514428 or email matthew.pascall@temple-legal.co.uk.


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