Regulated activities relating to consumer credit
Regulated activities relating to consumer credit

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Regulated activities relating to consumer credit
  • The FCA and consumer credit regime
  • Regulated consumer credit activities
  • Type of permission according to the regulated activities carried on
  • Consumer credit regulated activities under the appointed representative regime
  • Breaches of FSMA 2000
  • FCA consumer credit enforcement tracker

This Practice Note sets out and examines the consumer credit regulated activities in the Financial Services and Markets 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO), the requirements for firms performing consumer credit regulated activities, and the consequences of not being adequately authorised by the Financial Conduct Authority (FCA) when carrying out these regulated activities.

The FCA and consumer credit regime

On 1 April 2014, the FCA assumed responsibility from the Office of Fair Trading (OFT) for the regulation of consumer credit. This resulted in all firms licensed by the OFT entering into a new regulatory regime through which they were required to become authorised by the FCA or, if they were already authorised, to vary their existing permission to cover the consumer credit permissions. OFT license that were in place on 1 April 2014 subsequently lapsed, and all firms were required to apply to the FCA to obtain 'interim permission' or, if they were already FCA authorised, an 'interim variation of permission' until an application for full FCA authorisation or a variation of an existing permission could be made. Firms had until October 2016 to obtain full permission.

From 1 April 2014, the sections of the Consumer Credit Act 1974 (CCA 1974) that previously set out the activities that require an OFT licence were repealed and the requirement to be