Nostrum Group, the Harrogate and London based loan management software provider, has been granted full FCA authorisation and permissions in respect of the regulated activities it conducts on behalf of its clients.
Nostrum is now regulated for debt administration to cover its involvement in the servicing of customer loan accounts and handling of debt collection on behalf of the regulated clients it supports.
Although the provision of regulated servicing is only a component of Nostrum’s revenues, the company has implemented the FCA’s rules and regulations throughout its business and introduced a robust compliance framework in a statement of intent to provide an unrivalled level of service its clients.
Neil Warman, Chief Financial Officer at Nostrum Group, says: “We are very proud to have received our full authorisation by the FCA. As a technology and outsourcing firm operating in the financial services industry we recognise that compliance must be at the heart of our company and the services we provide. Consequently we’ve embraced the FCA regime throughout our business, something we feel will give great confidence to the increasing number of banks, finance providers and retail brands that we work with.”
Nostrum’s consumer credit operations previously fell under the regulatory regime of the Office of Fair Trading, as did those of the consumer credit sector as a whole until April 2014. Since this time lenders, brokers and other firms including outsource providers have been operating under interim permissions. Nostrum is one of the first firms offering both technology and outsource services to complete its migration into a fully authorised FCA firm.
Warman adds: “Working with an authorised firm for the provision of systems and process for such an important product as consumer finance means our clients can be reassured their customers are in safe hands. All our client contracts comply with FCA material outsourcing requirements and ensure our clients have the required audit rights under the FCA’s rules.”
Under the FCA’s regulatory regime, every one of Nostrum’s 80 employees will be required to complete an annual programme of compliance training, and all clients will benefit from key services such as business continuity plans that have been reviewed and deemed to meet both external accreditation and regulatory standards.
Earlier this year Nostrum announced record results for the third consecutive year; the firm has been recruiting on an ongoing basis over this period as it has continued to experience strong demand for its highly automated software, which makes lending cheaper, faster and safer.