Due diligence duties for directors and senior managers
This page was updated1 month ago
From 1 December 2021, directors or senior managers of a consumer credit provider and/or mobile trader selling goods on credit need to comply with the due diligence duty.
The duty requires directors and senior managers of consumer credit providers, including mobile traders selling goods on credit, to exercise due diligence to ensure that the creditor complies with its duties and obligations under the Credit Contracts and Consumer Finance Act (CCCF Act).
The due diligence duty is an important new obligation as it obliges and incentivises individual corporate officers to drive a culture of compliance with the CCCF Act from the top down.
We have developed guidance which helps to explain which directors and senior managers are subject to the duty of due diligence and provides information to help them understand what it means for them.