Being able to offer patient finance can be a game-changer for dental practices looking to make treatments more accessible and improve patient conversion. However, integrating finance into your patient journey can be more complicated than it might at first seem and there are plenty of potential pitfalls for the unwary and uninformed.
Before introducing finance options it’s crucial to understand the regulatory framework set by the Financial Conduct Authority (FCA) and specifically, whether your practice operates as an Appointed Representative (AR) or an Introducer Appointed Representative (IAR).
These two classifications determine what you can and cannot do when it comes to discussing, arranging, and advertising finance options.
Here’s a quick comparison.
AR vs IAR: who can do what?
Aspect |
Appointed Representative (AR) |
Introducer Appointed Representative (IAR) |
| FCA Status | Listed as AR under a Principal on FCA Register | Listed as IAR under a Principal on FCA Register |
| Regulated Activities | Can carry out credit broking (arranging finance) | Can only introduce patients to a lender or Principal |
| Discussing Finance Options | Can explain products and suitability | Can only provide generic info – no advice or recommendations |
| Application Support | Can assist patients with applications | Cannot help with applications |
| Advertising Finance | Can promote finance products (with compliance approval) | Can only mention finance is “available via our partner” |
| Training Required | Full training on regulated activity and compliance | Limited training on signposting |
| Compliance Oversight | Higher level of monitoring by Principal | Lower level due to reduced permissions |
| Use in Dental Practices | Ideal for practices wanting to offer finance in-house | Suitable for practices that only refer patients |
What does it mean to be an Appointed Representative (AR)?
An Appointed Representative is authorised to carry out regulated activities such as credit broking under the supervision of a Principal firm that is directly authorised by the FCA. This means your dental team can:
- Discuss finance products in detail with patients
- Assist patients in completing finance applications
- Offer access to multiple lenders (if permitted by your Principal)
- Advertise and promote finance options as part of your services, provided it’s done compliantly.
Being an AR gives your practice the flexibility to fully integrate finance into the treatment journey, making it easier for patients to say “yes” to the care they need.
What Is an Introducer Appointed Representative (IAR)?
An Introducer Appointed Representative, on the other hand, has a more limited role. IARs can only refer patients to a finance provider or Principal firm. They are not permitted to:
- Advise on or recommend specific finance products
- Help patients complete application forms
- Discuss product suitability.
Instead, IARs can provide generic information and signpost patients to the appropriate provider. This model suits practices that prefer a hands-off approach to finance, leaving the details to the lender.
Why it matters
The distinction between AR and IAR is about more than just operational preference as it’s a matter of legal compliance. According to the FCA: “If an IAR is engaging in activities beyond the terms of the scope of their appointment, they may be committing an offence.” This means that if your team members are discussing finance options or helping patients with applications while registered only as an IAR, you could be breaching FCA regulations.
How to Check Your Status
If you’re not sure whether your practice is an AR or IAR then you can check your registration status on the FCA’s official register: http://register.fca.org.uk
Making Patient Finance Seamless
If your goal is to make patient finance a seamless part of your treatment journey where your team can confidently explain options, assist with applications, and promote finance then you’ll need to operate as an Appointed Representative.
Now’s the time to make sure your team is empowered and your practice is protected. Medenta can support your practice in becoming an AR, ensuring you’re fully trained, compliant, and ready to offer regulated finance activities in-house.
If you have questions or want to explore how your practice can transition to offering patient finance compliantly, why not get in touch with the Medenta team?
Medenta Finance Limited, authorised and regulated by the Financial Conduct Authority No: 715523. Registered in Scotland, No: SC276679. Registered address: 50 Lothian Road, Festival Square, Edinburgh, EH3 9WJ. Tel: 01691 684175. Medenta act as a credit broker, not the lender and will introduce to V12 Retail Finance Limited for which they will receive a commission. The amount of commission will vary depending on the product chosen and amount borrowed.
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