The regulation of consumer credit advertisements
The regulation of consumer credit advertisements

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

  • The regulation of consumer credit advertisements
  • Regulation of consumer credit advertisements
  • Financial promotions regime—the general restriction
  • Guidance on what constitutes a financial promotion
  • General requirements—treating customers fairly and consumer credit advertisements
  • General requirements—CONC 3
  • To whom does CONC 3 apply?
  • Where does CONC 3 apply?
  • To what kind of communication does CONC 3 apply?
  • CONC 3—the requirement to be clear, fair and not misleading
  • More...

Regulation of consumer credit advertisements

On 1 April 2014, the regulation of consumer credit firms came under the supervision of the Financial Conduct Authority (FCA). The rules concerning the regulation of consumer credit advertisements that were contained in the Consumer Credit Act 1974 (CCA 1974) were transferred into Chapter 3 of the FCA Consumer Credit Sourcebook (CONC 3) by virtue of the Consumer Credit (High-Level Standards and Interim Regime) Instrument 2013 (FCA 2013/68) (the Instrument) made by the FCA in exercise of its powers under the Financial Markets and Services Act 2000 (FSMA 2000).

As a result, the Consumer Credit (Advertisements) Regulations 2004 (SI 2004/1484) (Advertisement Regulations 2004) and the Consumer Credit (Advertisements) Regulations 2010 (SI 2010/1970) (Advertisement Regulations 2010) were revoked effective 1 April 2014. CONC 3 relates to financial promotions and communications with customers, so is wider in scope than both the Advertisement Regulations 2004 and 2010 as it applies to all promotions and communications with customers rather than limited to advertisements that fell under section 43 CCA 1974 (now repealed). At the same time, sections 43 to 47 of CCA 1974 concerning advertisements and seeking business were also repealed by the Financial Services and Markets Act (Regulated Activities) (Amendment) (No 2) Order 2013.

Financial promotions regime—the general restriction

Section 21 of FSMA 2000 applies to all firms that advertise (ie promote) consumer credit products

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