Exempt consumer credit agreements under the FSMA 2000 (Regulated Activities) Order 2001
Produced in partnership with Rebecca Kellner of Orrick, Herrington & Sutcliffe and Jacqui Hatfield of Orrick, Herrington & Sutcliffe
Exempt consumer credit agreements under the FSMA 2000 (Regulated Activities) Order 2001

The following Financial Services practice note Produced in partnership with Rebecca Kellner of Orrick, Herrington & Sutcliffe and Jacqui Hatfield of Orrick, Herrington & Sutcliffe provides comprehensive and up to date legal information covering:

  • Exempt consumer credit agreements under the FSMA 2000 (Regulated Activities) Order 2001
  • Goode: consumer credit materials—exemptions
  • Legislative background to the exemptions
  • Current position on exemptions
  • Regulated activities and the general prohibition
  • What is a credit agreement?
  • What is an exempt agreement?
  • What are the consequences of exemption?
  • The exemptions
  • Article 60C (PERG 2.7.19C)—relating to the nature of the agreement
  • More...

This Practice Note seeks to explain the types of agreements which will be exempt agreements under the FCA consumer credit regimes. Entering into these exempt agreements will exempt a lender from carrying out the activity of entering into a regulated credit agreement as lender. Some other regulated activities relating to consumer credit agreements may also be exempt if relating to these types of agreements. However, these are dealt with separately in Practice Notes:

  1. Regulated activities—credit broker

  2. Regulated activities relating to the provision of credit information services and credit references

  3. Regulated activities for debt management firms and not-for-profit bodies, and

  4. Exclusions applying to several specified kinds of activity

This Practice Note does not deal with green deal plans or regulated mortgage contracts, which are subject to a separate regime under the FSMA 2000 and the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO). Further information can be found in: Mortgage and home finance regulation—overview.

Goode: consumer credit materials—exemptions

For further discussion on the topics raised in this Practice Note together with in-depth commentary on the exemptions available under the RAO), see Goode: Consumer Credit Law and Practice > Division I Commentary > Part IC Consumer Credit Legislation > 26 Exempt Agreements.

Legislative background to the exemptions

Since 1 April 2014, the Financial Conduct Authority (FCA) has been responsible for the regulation of consumer credit.

Prior to

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