Regulated activities for debt management firms and not-for-profit bodies
Produced in partnership with Jacqui Hatfield of Orrick, Herrington & Sutcliffe
Regulated activities for debt management firms and not-for-profit bodies

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

  • Regulated activities for debt management firms and not-for-profit bodies
  • Debt-related regulated activities under the Regulated Activities Order (RAO)
  • Debt adjusting—Article 39D
  • Debt-counselling—Article 39E
  • Generic advice
  • Debt-collecting—Article 39F
  • Debt administration—Article 39G
  • Persons having a connection with the agreement—Article 39H
  • Activities carried on by certain energy suppliers—Article 39I
  • Activities carried on in relation to a relevant agreement in relation to land—Article 39J
  • More...

Regulated activities for debt management firms and not-for-profit bodies

Article 39F(1) of Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO) provides that procuring the payment of a debt under any credit agreement (ie debt collecting) is a regulated activity. However, article 39H(1) excludes this regulated activity where it is carried on by a lender under the agreement, otherwise there would be a large overlap between article 60B(2) and article 39F. The Financial Services and Markets Act 2000 (Regulated Activities) (Coronavirus) (Amendment) Order 2020, SI 2020/480 (RAO Coronavirus Order) made several amendments to the RAO as a result of the implementation of the Bounce Back Loan Scheme (‘the BBLS’). SI 2020/480 has been made so that loans of £25,000 or less made to sole traders, unincorporated associations and partnerships of fewer than four people by commercial lenders under the BBLS are subject to the detailed regulatory provisions in the Consumer Credit Act 1974, the various pieces of secondary legislation made under that Act and the Financial Services and Markets Act 2000 (FSMA 2000) and the relevant rules made by the Financial Conduct Authority (FCA). First, article 2(2) inserted a provision in article 39H to state that the exclusion for lenders, in relation to the activity of debt collection, does not apply to lenders of BBLS loans of £25,000 or less and which are made

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