Regulatory & Compliance
This page summarises StepEx's regulatory status, responsibilities, and approach to compliance under UK financial services, data protection, and payment security requirements.
References to "StepEx" on this website refer to the StepEx group of companies. Where regulated lending activity is described, it is carried out by StepEx Lender Ltd (FCA FRN 824928).
Regulatory status
Regulated credit is provided by StepEx Lender Ltd, an FCA-authorised consumer credit firm and a wholly owned subsidiary of Step Exchange Ltd by the Financial Conduct Authority (FCA) to carry on consumer credit activities.
You can verify this on the FCA Register.
As an FCA-authorised firm, StepEx is subject to ongoing supervision and is required to comply with applicable FCA rules and principles, including those relating to consumer credit, financial promotions, affordability, and the fair treatment of customers.
Entity structure
- •Step Exchange Ltd — group / services entity
- •StepEx Lender Ltd — lender of record and regulated entity
StepEx's role and responsibilities
StepEx acts as the lender of record for all tuition finance it provides.
- •Finance agreements are entered into directly between the student and StepEx
- •StepEx is responsible for all regulated lending activity
- •Education providers do not lend to students and do not assume regulatory responsibility for credit
StepEx's responsibilities include:
- •Assessing creditworthiness and affordability
- •Issuing regulated consumer credit agreements
- •Providing required regulatory disclosures
- •Servicing agreements and collecting repayments
- •Handling complaints relating to the finance agreement
- •Meeting ongoing regulatory reporting and compliance obligations
Relationship with education providers
StepEx works with UK education providers under clearly defined regulatory arrangements.
Depending on the structure in place, providers may:
- •Signpost students to StepEx using FCA-approved financial promotions, or
- •Operate under StepEx's FCA permissions via an Introduced Appointed Representative (IAR) arrangement, where applicable and agreed
In all cases:
- •Regulatory accountability for credit remains with StepEx
- •Education providers do not provide credit advice
- •Education providers do not collect repayments
- •Education providers must not describe/endorse finance terms unless using StepEx-approved copy; and where providers are not IARs, they are signposting only.
Financial promotions
All financial promotions relating to StepEx finance are subject to FCA requirements.
- •StepEx reviews and approves financial promotions relating to its products
- •This includes StepEx-owned pages and course-specific finance landing pages
- •Communications issued by education providers are made either through approved promotions or under an agreed regulatory arrangement
Affordability and responsible lending
Before offering finance, StepEx assesses whether repayments are affordable based on the applicant's individual circumstances.
This assessment may include:
- •Information provided by the applicant
- •Credit reference agency data
- •Bank transaction data (where applicable)
- •Other information required to assess eligibility and affordability
Finance is offered only where StepEx considers repayments to be affordable. Approval is not guaranteed.
Transparency and disclosures
Before entering into a finance agreement, students are provided with clear information, including:
- •The amount financed
- •The total amount payable
- •Any applicable interest or charge for credit
- •Repayment schedules and conditions
- •Rights to withdraw or repay early
Students are given the opportunity to review this information before entering into an agreement.
Repayments and credit reporting
StepEx finance agreements are regulated consumer credit agreements.
- •Repayment performance may be reported to credit reference agencies in accordance with applicable law
- •Positive repayment behaviour may contribute to a positive credit record
- •Missed repayments may adversely affect a borrower's credit record
Complaints handling
StepEx maintains a formal complaints process in line with FCA requirements.
Customers may raise a complaint with StepEx in relation to their finance agreement or its administration. If a complaint is not resolved within the applicable timeframe, the customer may refer the matter to the Financial Ombudsman Service (FOS).
Data protection and information security
StepEx processes personal data in accordance with applicable UK data protection legislation, including the UK GDPR.
StepEx implements appropriate technical and organisational measures to protect personal data against unauthorised access, loss, misuse, or disclosure.
Further details on how personal data is collected, used, and retained are set out in StepEx's Privacy Policy.
Payment security (PCI DSS)
Where StepEx processes or facilitates card payments, it does so in accordance with the Payment Card Industry Data Security Standard (PCI DSS).
- •StepEx maintains PCI DSS compliance appropriate to its role.
- •Cardholder data is handled securely and in line with industry standards.
- •Sensitive payment data is not stored except where permitted and necessary.
Scope and limitations
The information on this page is provided for general informational purposes only.
- • It does not constitute financial advice.
- • It does not form part of any contractual agreement.
- • Finance is offered only for participating education providers and is subject to eligibility and affordability assessments.
Regulated credit is provided by StepEx Lender Ltd, an FCA-authorised consumer credit firm and a wholly owned subsidiary of Step Exchange Ltd. Terms vary by course and education provider.