Consumer credit law for Insolvency Practitioners (IPs)
Produced in partnership with Russell Kelsall of TLT LLP and Caroline Castle of Pinsent Masons

The following Restructuring & Insolvency practice note produced in partnership with Russell Kelsall of TLT LLP and Caroline Castle of Pinsent Masons provides comprehensive and up to date legal information covering:

  • Consumer credit law for Insolvency Practitioners (IPs)
  • Regulatory oversight
  • What type of consumer credit activities require authorisation?
  • Interim permission
  • Overall impact of transfer from OFT to FCA
  • Impact of the transfer from the OFT to the FCA on professional firms
  • Exclusions
  • Exemption for regulators
  • Part XXIV FSMA 2000 (insolvency)
  • Things to watch out for: how can you unwittingly fall foul of FSMA 2000?
  • More...

Consumer credit law for Insolvency Practitioners (IPs)

This Practice Note provides a summary of consumer credit law following the transfer of regulatory oversight to the Financial Conduct Authority (FCA). In particular, the Practice Note will examine some of the changes which have impacted upon insolvency practitioners (IPs). For further details on consumer credit agreements, see Practice Notes: Regulated activities relating to consumer credit and The FCA consumer credit regime: an overview of rules relating to arrears, default and recovery (a subscription to Lexis®PSL Financial Services is required).

Regulatory oversight

On 1 April 2014, responsibility for consumer credit transferred from the Office of Fair Trading (OFT) to the FCA. Part of the consequence of this was to replace the OFT’s licensing scheme under the Consumer Credit Act 1974 (CCA 1974) with the FCA’s authorisation regime under Part IV (A) of the Financial Services and Markets Act 2000 (FSMA 2000). If a firm had:

  1. a consumer credit licence on 31 March 2014, and

  2. applied (before 1 April 2014) for an interim permission under FSMA 2000 (and paid the fee)

it continued to be authorised from 1 April 2014 (but was given a landing slot during which it would need to apply either a full or limited permission).

If a firm did not satisfy both of these requirements on 31 March 2014, its consumer credit licence ended immediately before 1 April 2014.

There

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