The following Financial Services guidance note Produced in partnership with Jacqui Hatfield of Orrick Herrington & Sutcliffe UK LLP provides comprehensive and up to date legal information covering:
Since 1 April 2014 the UK Financial Conduct Authority (FCA) has been responsible for regulating consumer credit firms in the UK. The FCA assumed responsibility for the regulation of consumer credit from the Office of Fair Trading (OFT). The financial crisis of 2007/2008 prompted a thorough review of all aspects of the financial regulation structure including consumer credit. Following the government’s review, it was considered that the regulatory split between the OFT and FCA caused a fundamental weakness in financial services consumer credit regulation. Consequently, the government decided to bring consumer credit into the same regulatory regime as other retail financial services under the FCA. The government was also of the view that replacing the statutory basis of consumer credit regulation under the Consumer Credit Act 1974 (CCA) with a rules-based approach would result in a simpler, more flexible and responsive regime.
This regime is governed by the Financial Services and Markets Act 2000 (FSMA 2000) and its secondary legislation, in particular the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544) (RAO), retained provisions in the CCA and its secondary legislation and rules and guidance in the FCA Handbook, which together provide the legislative framework in which the FCA consumer credit regime operates.
It is important to bear
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