FCA Regime For Consumer Credit High Level Proposals

The FSA published its proposed approach to consumer credit regulation on 6 March. The Consultation Paper (CP13/7) sets out the approach the FCA intends to adopt for the regulation of this activity when it transitions from the Office of Fair Trading (OFT) on 1 April 2014. This will affect both existing regulated entities such as banks and building societies, but will also bring into regulation a number of other types of firm which are involved in the provision of finance to consumers. This paper was released on the same day as the OFT's report into payday lending, which provoked a large amount of media interest, and the HM Treasury/Department for Business, Innovation & Skills consultation, 'A new approach to financial regulation', which sets out the draft statutory instruments in this area.