Code of Practice
The CDFA Code of Practice
As CDFIs are subject to varying regulatory regimes, none of which cover the whole sector in a clear and transparent way, CDFA wished to bring in shared standards which would go towards building stakeholder confidence.
We therefore developed a Code of Practice for the UK CDFI sector, with initial mentoring from the FSA. It has subsequently been welcomed by the Office of Fair Trading, public funders, trusts and foundations.
It is a requirement of membership is that a CDFI signs up to the Code of Practice. This is coming under close scrutiny as potential funders look to invest in the sector, and it is essential that we maintain high standards for our own self-regulation. With the launch in 2011 of the EU Microfinance Code of Good Conduct, and incorporating feedback we have received from members over the past several years, we have updated our Code of Practice to make it fit for purpose from 2012.
The Code of Practice is tied to CDFA’s CM2 Performance Framework, a monitoring and assessment tool which examines CDFIs in three key areas: financial, business operations and impact.