Regulated activities—credit broker
Produced in partnership with Jacqui Hatfield of Orrick Herrington & Sutcliffe UK LLP
Regulated activities—credit broker

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:

  • Regulated activities—credit broker
  • Credit brokerage under the consumer credit regime
  • What activities constitute credit broking under the RAO?
  • Are there any exemptions available?
  • What if my main business does not involve providing credit broking services?
  • What FCA rules apply to credit brokers?
  • Credit broking advertisements
  • Credit broking fees
  • Enforcement for credit brokers

Credit brokerage under the consumer credit regime

Since April 2014, the regulation of consumer credit in the UK has been overseen by the Financial Conduct Authority (FCA), and the regulatory regime under the Financial Services and Markets Act 2000 (FSMA 2000) which replaced the previous licensing regime under the Consumer Credit Act 1974 (CCA 1974) and the Office of Fair Trading (OFT), although some parts of the CCA 1974 remain in force following the transfer to the FCA.

Credit broking is a regulated activity under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (the RAO) (for further information, see Practice Note: Regulated activities relating to consumer credit. The general prohibition set out in FSMA 2000, s 19 means that a person must not carry on the regulated activity of credit broking in the UK by way of business without being authorised by the FCA or exempt. For a discussion on the meaning ’by way of business’, see Practice Note: What does 'by way of business' mean? and PERG 2.3 (The Business Element) contained in the FCA Handbook.

For further information on additional regulated activities under the CCA 1974, see Practice Notes: Regulated activities relating to consumer credit, Regulated activities for debt management firms and not-for-profit bodies, Regulated activities relating to the provision of credit information services and credit