On 1 April 2014 we will take over the regulation of the consumer credit industry from the Office of Fair Trading. We are now consulting on the detailed proposals for how we will do this.
In FSA CP13/7 we consulted on our high-level proposals for consumer credit firms. Based on the feedback we received we have finalised our proposals and made rules to apply the high-level standards in our Handbook to consumer credit firms.
The majority of adults in the UK are customers, or potential customers, of financial services firms. So anyone may be interested in commenting on how we propose to regulate consumer credit firms.
In particular our proposals will interest:
We are consulting on the following main areas.
Our policy statement PS13/8 (August 2013) included rules carrying across some CCA secondary legislation, relating to exemptions and total charge for credit.
Our main paper also includes a policy statement confirming changes to our high-level standards, on which we consulted earlier in the year in CP13/7.
Our 11 fundamental principles that firms must comply with at all times will apply to all authorised consumer credit firms and those with interim permission.
Most will be familiar for well-run firms as they are generally similar to concepts the OFT applies when deciding whether to grant a consumer credit licence, and to those set out in OFT guidance.
These expand on one of our principles, Principle 3, which states that a firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems.
We will apply these systems and controls rules to all authorised consumer credit firms and those with interim permission, although there will be some exceptions.
We have set wording that firms will need to use to make it clear to consumers that they are regulated by us.
For more details see Part B of our full paper.
CP13/10 - Detailed proposals for the FCA regime for consumer credit:
Please send us your comments on our CP by 3 December 2013. You can do this by using our online response form, or using the contact details on page 4.
If you have any general comments not related to specific proposals please email us at: email@example.com
We will review all your responses and publish our feedback. You can find more information on our expected consumer credit publications in Chapter 13.
For more information:
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