Why Manchester & Liverpool are Becoming Compliance Hubs.
If you are a business owner or a compliance manager in the North of England, you may have noticed a major change in the financial landscape, with London no longer being the only place for serious lending. Rather, there has been a shift where Manchester and Liverpool are fast becoming the new heart of the alternative lending sector. Whilst this shift is exciting and enticing for many businesses, the FCA is putting more emphasis on customer outcomes via the Consumer Duty guidelines. Consequently, the pressure to stay compliant is higher than ever before.
In this blog, we explain why this shift from the South to the North is happening and what you need to know to keep your business safe.
The growth of Northern alternative lending
Recently, the North West has seen an explosion of fintech businesses opening new offices and operations. This movement is driven by a demand for faster and more flexible finance that traditional banks often fail to provide. This means that Manchester and Liverpool now offer a perfect mix of lower operating costs and a high density of professional talent for businesses. As a result, businesses are moving to the region for them to scale more quickly without the overheads you’d usually find being based in London or the South of England.
However, despite the potential growth and lower overheads, this has meant that these regions are now attracting more attention from the FCA, which in turn leads to more focus on supervision. This means that for business owners looking to move their operations to the North of England, their compliance must be robust and accurate.
Why compliance is the deciding factor for success
The transition into a compliance hub means that the standard for entry and operation has been raised. For a business owner, the primary goal is growth, but that growth is fragile if the underlying regulatory framework is weak. Many businesses in Manchester and Liverpool are currently struggling to adapt their startup agility to the rigorous demands of the Consumer Duty guidelines, as the regulation requires you to prove that every product you offer delivers good outcomes for customers.
If you fail to meet the standards set by the FCA, it will do more than just invite fines; it can halt your expansion or lead to the loss of your permissions. This is why a compliance manager needs a strategy that fully integrates the regulatory requirements into your business model. Equally, understanding the nuances of the Northern market is vital because local businesses can often face different operational challenges compared to their London counterparts.
Support from ALPH Legal and Compliance
This is where our team at ALPH Legal and Compliance can help, as we provide an advantage for businesses in the North West. We offer solutions that bridge the gap between your commercial goals and regulatory obligations. For example, if your business is in the early stages of growth or looking to launch new products, our FCA Authorisation services will ensure that your application is robust enough to withstand intense scrutiny from the start.
For more established firms, the risk lies in becoming complacent as current rules change and new rules become law. If there is a gap in your systems, it could lead to a significant regulatory breach, which could lead you to face supervisory action and loss of authorisation. When you work with ALPH Legal, we will conduct a thorough health check of your operations and identify any potential weaknesses before the FCA does, which gives you the opportunity to rectify issues in a controlled and cost-effective manner.
How ALPH Legal protects your business reputation
Whilst it’s important to operate within the law, being compliant is about building trust with your investors and your customers. As Manchester and Liverpool continue to grow, businesses that succeed are those that treat regulation as a competitive opportunity rather than a hurdle. When you work with us at ALPH Legal and Compliance, you access a team of compliance experts and will act as an extension of your own team, so that you can focus on your business. If you’re looking for compliance support for your business, speak to our team today.