What are comparable guarantees and how would they affect my firm?
For a personal finance firm, a comparable guarantee must be provided by a bank, building society, insurer or a friendly society. Where the firm is in the same group in which there is a bank, building society, insurer or friendly society, then the comparable guarantee must be provided by that institution. For a general insurance intermediary, a comparable guarantee can be provided by an authorised firm that has net tangible assets of more than £10 million. Where the insurance intermediary is in the same group as the authorised firm that has net tangible assets of £10 million, the comparable guarantee must be provided by that authorised firm. For mortgage intermediaries, a comparable guarantee can be provided by an authorised firm that has net tangible assets of £1 million. Where the mortgage intermediary is in the same group as an authorised firm with net tangible assets of £1 million, the comparable guarantee must be provided by that authorised firm. The full requirements of the exempt
