Passporting and consumer credit
Produced in partnership with Jacqui Hatfield of Orrick, Herrington & Sutcliffe
Passporting and consumer credit

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

  • Passporting and consumer credit
  • Passporting rights under other financial services single market Directives
  • Exercising treaty rights under Schedule 4 of FSMA 2000
  • Providing services entirely at a distance by electronic means from an EEA Member State under the E-Commerce Directive

BREXIT: As of exit day (31 January 2020), the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this Practice Note. For the latest developments in relation to consumer credit, see the Consumer credit—timeline.

The UK implemented the provisions of the Directive 2008/48/EC, Consumer Credit Directive (CCD) through amendments to the then existing consumer credit regime under the Consumer Credit Act 1974 (CCA 1974). Since 1 April 2014, the regulation of consumer credit activities in the UK has been the responsibility of the Financial Conduct Authority (FCA). Although certain provisions of the CCA 1974 and its related secondary legislation remain in force, the regulation of consumer credit is governed by the Financial Services and Markets Act 2000 (FSMA 2000) and the Financial Services and Markets Act (Regulated Activities) Order 2001, SI 2001/544 (the RAO) as well as the retained provisions of the CCA 1974. As part of this transfer of consumer credit regulation to the FCA, the old consumer credit passporting regime (set out within the CCA 1974 and Schedules 13 and 16 of FSMA 2000) was repealed.

By way of general background, persons are prohibited from carrying out 'regulated activities' by way of