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Changes to the regulation of consumer credit

04 March 2014 | tagged Current issues

The FCA will assume responsibility from the Office of Fair Trading (OFT) from 1 April 2014 for the regulation of consumer credit. The Society's current Group Consumer Credit Licence for the whole profession will cease on 1 April 2014. Please see the licence which lists all the consumer credit activities currently permitted under the group licence.

The Society's IFB regime will change on 1 April 2014 and will from that date extend to cover incidental consumer credit activities. Such consumer credit activities are credit broking, operating an electronic system in relation to lending, activities in relation to debt, regulated credit agreements, regulated consumer hire agreements and specified activities in relation to information. By virtue of your firm's IFB licence, your firm will be able to conduct all these consumer credit activities on an incidental basis from 1 April 2014 and no action requires to be taken by your firm if such work is incidental to your firm's other professional business.

It is only where a practice conducts consumer credit work on a "stand-alone basis" that a consumer credit licence from the Financial Conduct Authority (FCA) will be required.

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