As part of this consultation, we will provide opinions on our proposals for regulating the consumer credit activities of SRA-approved individuals and businesses pursuant to Part 20 of the Financial Services and Markets Act 2000 (FSMA). In summary, as a result of the amendments that came into effect on April 1, 2014, the FSMA requires that certain consumer credit activities be regulated. These activities include credit withdrawal, debt adjustment and debt 1 advice. From that date, the regulation of consumer credit activities was transferred from the Office of Fair Trading (OFT) to the Financial Conduct Authority (FCA). Under Part 20, members of a “Designated Professional Body” (PBO), such as companies approved by the SRA. B are exempt from the requirement to be approved by the FCA to conduct FSMA-regulated activities. entering into a regulated credit contract as a lender, unless the regulated credit contract relates to the payment of payments or professional expenses; (a) the total amount that the borrower must repay to remedy the borrower`s debt may vary depending on a formula defined in the agreement that affects the evolution of the level of an index or other factor, or we propose to amend the code to include “regulated credit contracts” in accordance with the requirements set out in practices 6.1 that third-party introductions only take place if the welfare of the customer concerned and the agreement is tailored to the customer`s needs. A non-legal agreement between a client and one or more of the client`s lenders, whose purpose is to settle or liquidate the client`s debts by making regular payments to a third party who manages the plan and distributes the money to lenders. The term “regulated agreement” within the meaning of CCA 1974, s 189 covers both regulated credit contracts and regulated consumer leases. This practice note outlines the concepts of “credit” and regulated credit contracts, as well as the types of credit contracts that are “regulated credit contracts” and therefore are regulated.
Regulated consumer leases are not taken into account. It is a borrower-lender contract or a P2P agreement; Since consumer credit contracts have made specified investments9, the above activities are now considered regulated activities. To carry out a regulated activity, a business must either be authorized (currently under a provisional licensing regime in the case of a consumer credit authorization) or be exempt. If a regulated activity is carried out by a company that is neither authorized nor exempt, the underlying agreements related to that activity cannot be applicable and that undertaking will commit a criminal offence. Given these consequences, it is important that any interpretation or exemption on which a securitization APA is based be clear and unambiguous. The definition of a regulated credit contract is defined in section 60B of the ROE and is the key to determining whether A – Regulated consumer credit activities are included in Part 2 or 3A of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO) and are also mentioned in the definition of “credit-related activities” in the glossary SRA.