Glossary of Terms
Financial Conduct Authority (FCA)
The FCA is the organisation that regulates financial services in the UK. Its role is to make sure firms treat customers fairly, provide clear information, and sell products that are right for their needs.
Commission Models
A commission model is the way a dealer or broker is paid by a lender when arranging finance for a customer. It explains how commission is calculated and when it is paid.
Discretionary Commission Agreements (DCA)
Discretionary Commission was a type of commission where a dealer or broker could set or change the interest rate a customer paid. The amount of commission a dealer received depended on the rate they selected. This model is no longer allowed by the FCA.
Non-Discretionary Commission Agreements (Non-DCA)
This is a type of commission where the dealer or broker cannot change the interest rate to affect the amount of commission they receive. The commission is set in advance by the lender and does not depend on or impact the customer’s rate.