Delayed consultation on the transfer of Consumer Credit Regulation to the Financial Conduct Authority (FCA)
The publication of a consultation paper on the new regulatory regime for Consumer Credit was due to be released in January.
However, we have received notification from the FSA that publication will now take place in March 2013.
We will expect the following documents at this time:
- A consultation by the Government setting out the secondary legislation necessary to effect the transfer of Consumer Credit regulation to the FCA. This will identify which Consumer Credit Act provisions will be retained and which will be transferred to the FCA.
- A consultation by the FCA setting out the overall design of the new regime.
- A briefing paper by the Department for Business on how stakeholder discussions will be managed during the consultation period.
This announcement is likely to be disappointing for those firms who have been following the changes and who want to get to grips with putting the appropriate systems and procedures in place to comply with the new regime. There is unlikely to be a delay in the implementation date of April 2014!
Once the consultation paper is published we will provide you will more detail about the shape that the regulation of consumer credit is likely to take.
Our best guess is that it will be similar to the current FSMA style regulation including a challenging application process, ongoing supervision and enforcement when firms don't comply.
We will continue to keep you updated.